INVESTOR TELECONFERENCE PRESENTATION

1

Second Quarter 2021July 28, 2021

INVESTOR TELECONFERENCE

PRESENTATIONAVA Wheaton

Silver Spring, MD

Avalon Marlborough

Marlborough, MA

eaves Mission Ridge

San Diego, CA

2

See Appendix for information about forward-looking statements

and definitions 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.

3

PARTICIPANTS

TIM NAUGHTON CHAIRMAN & CHIEF EXECUTIVE OFFICER

BEN SCHALL PRESIDENT

KEVIN O’SHEA CHIEF FINANCIAL OFFICER

MATT BIRENBAUM CHIEF INVESTMENT OFFICER

SEAN BRESLIN CHIEF OPERATING OFFICER

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Q2 | YTD 2021 RESULTS & ACTIVITY Q2 YTD

CORE FFO PER SHARE YEAR-OVER-YEAR CHANGE (11.2%) (14.8%)

SAME STORE RESIDENTIAL RENTAL REVENUE CHANGE

GAAP BASIS - YEAR-OVER-YEAR | SEQUENTIAL

CASH BASIS - YEAR-OVER-YEAR | SEQUENTIAL

(4.7%) | 0.9%

(2.5%) | 1.7%

(6.9%) | N/A

(5.9%) | N/A

DEVELOPMENT COMPLETIONS | WTD. AVG. INITIAL PROJECTED STABILIZED YIELD $ 385M | 6.4% $ 985M | 5.9%

DEVELOPMENT STARTS $ 580M $ 580M

CAPITAL RAISED | WTD. AVG. INITIAL COST OF CAPITAL(1) $ 540M | 3.7% $ 625M | 3.8%

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

Source: Internal company reports.See Appendix for a reconciliation of Net Income attributable to common shareholders to FFO and to Core FFO.(1) 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.

5

(8%)

(4%)

-

RESIDENTIALLEASE RATES

CONCESSIONS &OTHER DISCOUNTS

ECONOMICOCCUPANCY

OTHERRENTAL REVENUE

UNCOLLECTIBLELEASE REVENUE

TOTALRESIDENTIAL

RENTAL REVENUE(GAAP BASIS)

TOTALRESIDENTIAL

RENTAL REVENUE(CASH BASIS)

YEA

R-O

VER

-YEA

R C

HA

NG

E

AVB Q2 2021 SAME STORE YEAR-OVER-YEARCOMPONENTS OF RESIDENTIAL RENTAL REVENUE CHANGE

THE YEAR-OVER-YEAR DECLINE IN SAME STORE REVENUE WAS DRIVEN BY

LOWER EFFECTIVE RENTS, PARTIALLY OFFSET BY AN INCREASE IN OCCUPANCY

Source: Internal company reports.The Company amortizes concessions over the term of the lease.

(4.0%)

(2.7%)

1.6%0.3% 0.1%

(4.7%)

(2.5%)

6

(2%)

2%

RESIDENTIALLEASE RATES

CONCESSIONS &OTHER DISCOUNTS

ECONOMICOCCUPANCY

OTHERRENTAL REVENUE

UNCOLLECTIBLELEASE REVENUE

TOTALRESIDENTIAL

RENTAL REVENUE(GAAP BASIS)

TOTALRESIDENTIAL

RENTAL REVENUE(CASH BASIS)

YEA

R-O

VER

-YEA

R C

HA

NG

E

AVB Q2 2021 SAME STORE SEQUENTIALCOMPONENTS OF RESIDENTIAL RENTAL REVENUE CHANGE

AN INCREASE IN OCCUPANCY AND LOWER BAD DEBT

RESULTED IN A SEQUENTIAL INCREASE IN SAME STORE REVENUE

Source: Internal company reports.The Company amortizes concessions over the term of the lease.

(0.2%)

(0.4%)

0.7%0.2%

0.6% 0.9%

1.7%

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LIKE-TERM EFFECTIVE RENT CHANGE TURNED POSITIVE IN JUNE

AND FURTHER ACCELERATED IN JULY

Source: Internal company reports.(1) Data as of July 26th, 2021.

(12%)

(6%)

-

6%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL

2020 2021

AVB SAME STORELIKE-TERM EFFECTIVE RENT CHANGE(1)

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Source: Internal company reports.(1) Data as of July 26th, 2021.(2) Represents the effective rent (net of concessions) for new move-ins only.

$ 2,200

$ 2,500

$ 2,800

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

AVB SAME STORE MOVE-IN RENT VALUE(1,2)

ACROSS THE PORTFOLIO, MOVE-IN RENT VALUES HAVE REACHED

2019 PEAK LEVELS AND ARE UP ≈ 18% YEAR-TO-DATE

20202021 2019

9

$ 2,200

$ 2,700

$ 3,200

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

NORTHERN CALIFORNIA

MOVE-IN RENT VALUES ≥ 2019 PEAK LEVELS IN EVERY REGION,EXCEPT NORTHERN CALIFORNIA


BY REGION

$ 2,200

$ 2,700

$ 3,200

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

NEW ENGLAND


$ 2,200

$ 2,700

$ 3,200

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

METRO NEW YORK / NEW JERSEY

$ 1,700

$ 2,100

$ 2,500

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

MID-ATLANTIC

$ 1,700

$ 2,100

$ 2,500

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

PACIFIC NORTHWEST

$ 1,700

$ 2,100

$ 2,500

JAN

FEB

MA

R

AP

R

MA

Y

JUN

JUL

AU

G

SEP

OC

T

NO

V

DEC

SOUTHERN CALIFORNIA

20202021 2019

10

$ 2,100

$ 2,650

$ 3,200


SUBURBAN COMMUNITIES

$ 2,100

$ 2,650

$ 3,200


URBAN COMMUNITIES

SUBURBAN MOVE-IN RENT VALUES ARE UP 3+%, WHILE URBAN MOVE-IN

RENT VALUES ARE DOWN ≈ 7.5% VERSUS 2019 PEAK LEVELS


BY SUBMARKET TYPE


20202021 2019

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SUBURBAN ASKING RENTS WELL ABOVE THE 2019 PEAK,URBAN ASKING RENTS LIKELY TO ACCELERATE AS RE-OPENINGS CONTINUE

OTHER SUBURBAN,

40%

JOB-CENTER SUBURBAN,

28%

CORE URBAN, 19%

SECONDARY URBAN, 13%

AVB SAME STOREPORTFOLIO BY SUBMARKET TYPE(1)

SUBURBAN

68%OF SAME STORE

PORTFOLIO

Source: AVB Market Research Group, Internal Company Reports.(1) Allocation based on Q2 2021 Same Store residential rental revenue.(2) July 2019.

AVB SAME STOREASKING RENTS VERSUS 2019 PEAK(2)

BY SUBMARKET TYPE

SUBMARKET TYPEAS OF

JULY 26, 2021

OTHER SUBURBAN + 14.7%

JOB-CENTER SUBURBAN + 5.6%

CORE URBAN + 0.7%

SECONDARY URBAN (0.6%)

TOTAL + 7.7%

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ASKING RENTS CONTINUE TO CLIMB, WHICH BODES WELL FOR THE FUTURE

TREND IN MOVE-IN RENT VALUES


$ 2,000

$ 2,500

$ 3,000

JAN FEB MAR APR MAY JUN JUL

AVB SAME STORE2021 ASKING RENTS & MOVE-IN RENT VALUES(1,2)

ASKING RENT MOVE-IN RENT VALUE

≈ 12%

▲ ≈ 6%

JULY 2021(1) ASKING RENT AND MOVE-IN RENT VALUES

VS. DECEMBER 2020

ASKING RENT + 23.5%

MOVE-IN RENT VALUE + 18.4%

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SEVEN LEASE-UPS, REPRESENTING ≈ $850M IN TOTAL CAPITAL COST, BEATING EXPECTATIONS AND DELIVERING STRONG VALUE CREATION

Source: Internal company reports.(1) Includes Avalon Old Bridge, Avalon 555 President, Kanso Twinbrook, Avalon Newcastle Commons II, Avalon Foundry Row, Avalon Monrovia, and Avalon Brea Place.

CURRENT LEASE-UP ACTIVITY(1) CURRENT PROJECTION

ORIGINAL PROJECTION

VARIANCE

WTD. AVG. RENT PER HOME $ 2,560 $ 2,405 $ 155 | 6.4%

WTD. AVG. INITIAL PROJECTED STABILIZED YIELD 6.1% 5.7% 40 BPS

AVALON BREA PLACEBREA, CA

AVALON FOUNDRY ROWOWINGS MILLS, MD

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INTRODUCING KANSO: LIVE SIMPLY, WITHOUT SACRIFICE

Source: Internal company reports.

NEW BRAND TO SERVE DISTINCT CUSTOMER SEGMENT

➢ FOCUSED ON APARTMENT HOMES AND LOCATION, WITHOUT ADDITIONAL SERVICES

➢ APARTMENT HOME LAYOUT AND FINISHES COMPARABLE TO AVALON

➢ LIMITED COMMON AREA AMENITIES (NO SWIMMING POOL, FITNESS CENTER, OR LOUNGE)

TECH-ENABLED, SELF-SERVICE OPERATIONS

➢ REDUCED ONSITE STAFFING

➢ CENTRALIZED OFFSITE RESIDENT SUPPORT

COMPETITIVE PRICING

➢ LOWER CAPITAL AND OPERATING COSTS ENABLE BETTER VALUE PROPOSITION TO TARGET CUSTOMER SEGMENT

TOTAL CAPITAL COST $ 67M

APARTMENT HOMES 238

AVERAGE RENT PER APARTMENT HOME $ 1,775

TOTAL CAPITAL COST PER APARTMENT HOME ≈ $280,000

KANSO TWINBROOKROCKVILLE, MD

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DEVELOPMENT STARTS(2)

AGGREGATE TOTAL CAPITAL COST≈ $ 580M

WTD. AVG. INITIAL STABILIZED YIELD≈ 5.7%

DISPOSITIONS(1)

AVERAGE AGE≈ 25 YEARS

AGGREGATE NET PROCEEDS≈ $ 540M

WTD. AVG. MARKET CAPITALIZATION RATE≈ 3.7%

STRONG DISPOSITION ACTIVITY, AT RECORD-LOW CAP RATES,FUNDING ACCRETIVE NEW DEVELOPMENT STARTS

Q2 2021 DISPOSITIONS & DEVELOPMENT STARTS

Source: Internal company reports.(1) Includes wholly-owned dispositions (including residential condominium sales at The Park Loggia) only.(2) Aggregate Total Capital Cost and weighted average Initial Stabilized Yield are projections.

200BASIS POINT SPREAD

AVALON REDMOND PLACEREDMOND, WA

AVALON BRONXVILLEBRONXVILLE, NY

AVALON NORWALKNORWALK, CT

AVALON GLEN COVEGLEN COVE, NY

AVALON BOTHELL COMMONS IBOTHELL, WA

AVALON BRIGHTONBOSTON, MA

AVALON AMITYVILLE IAMITYVILLE, NY

AVALON MERRICK PARKMIAMI, FL

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THIRD QUARTER AND FULL YEAR FINANCIAL AND OPERATING OUTLOOK

Source: Internal company reports.See Appendix for a reconciliation of Projected Net Income attributable to common shareholders to Projected FFO and to Projected Core FFO.

Q3 | FULL YEAR 2021 FINANCIAL & OPERATING OUTLOOK Q3 FULL YEAR

PROJECTED CORE FFO PER SHARE RANGE $ 1.91 - $ 2.01 $ 7.92 - $ 8.12

SAME STORE COMMUNITIES (YEAR-OVER-YEAR)

RESIDENTIAL REVENUE CHANGE (1.1%) – (0.5%) (3.7%) – (2.7%)

RESIDENTIAL OPERATING EXPENSE CHANGE 3.2% – 3.8% 2.8% – 3.8%

RESIDENTIAL NOI CHANGE (3.6%) – (2.4%) (7.2%) – (5.2%)

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UPDATED FULL YEAR DEVELOPMENT AND CAPITAL ACTIVITY OUTLOOK

Source: Internal company reports.(1) As provided in the Company’s earnings release dated February 3rd, 2021.

FULL YEAR 2021 DEVELOPMENT & CAPITAL ACTIVITY OUTLOOK CURRENT ORIGINAL(1)

DEVELOPMENT

EXPECTED TOTAL CAPITAL COST FOR DEVELOPMENT STARTS $ 1.1B - $ 1.3B $ 650M - $ 850M

EXPECTED TOTAL CAPITAL COST FOR DEVELOPMENT COMPLETIONS $ 1.1B $ 1.1B

PROJECTED NOI FROM DEVELOPMENT COMMUNITIES $ 48M - $ 52M $ 40M - $ 50M

CAPITAL ACTIVITY

NEW CAPITAL SOURCED FROM ASSET AND CONDOMINIUM SALESAND CAPITAL MARKETS ACTIVITY

$ 1.6B $ 630M

CAPITAL USED FOR DEVELOPMENT, ACQUISITIONS, REDEVELOPMENT,AND DEBT REDEMPTIONS AND AMORTIZATION

$ 1.8B $ 835M

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PROGRESS ON 2030 SCIENCE-BASED TARGETS

53%REDUCTION IN SCOPE 1 & 2 GHG EMISSIONS PER SQUARE FOOT BY 2030

15.4%REDUCTION IN 2020

47%REDUCTION IN SCOPE 3GHG EMISSIONS PER SQUARE FOOT BY 2030

16.0%REDUCTION IN 2020

HIGHLIGHTS FROM OUR 10TH CORPORATE RESPONSIBILITY REPORT

CORPORATE RESPONSIBILITY RECOGNITION

#1 IN MULTIFAMILY SECTORGLOBAL & REGIONAL

A –ESG SCORE

RESIDENTIALWINNER

CUSTOMERS & ASSOCIATES

#1 ONLINE

CUSTOMER REPUTATIONAMONG REITS(1)

86%ASSOCIATE

ENGAGEMENTTOP QUARTILE OF COMPANIES

SURVEYED BY PERCEPTYX®

PHILANTHROPY & COMMUNITY INVESTMENT

$ 2.4MCASH & IN-KIND DONATIONS

Source: Internal company reports.(1) Includes AIRC, CPT, EQR, ESS, MAA, and UDR.

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KEY TAKEAWAYS

➢ PORTFOLIO POSITIONING AND DIVERSIFICATION LEADING TO AN ACCELERATION IN OPERATING RESULTS

→ SUBURBAN COMMUNITIES (≈ 2/3RDS OF PORTFOLIO) CONTINUE TO LEAD WITH RENTS WELL ABOVE PRIOR PEAKS

→ URBAN COMMUNITIES (≈ 1/3RD OF PORTFOLIO) POISED TO BENEFIT FROM FULSOME RETURN TO OFFICE/UNIVERSITIES

→ CLASS A COMMUNITIES EXPECTED TO CONTINUE TO OUTPERFORM DURING THE EARLY PHASE OF THE RECOVERY, CONSISTENT WITH PRIOR CYCLES

➢ DEVELOPMENT GENERATING MEANINGFUL EARNINGS GROWTH AND VALUE CREATION; INCREASING DEVELOPMENT STARTS

→ LEASE-UPS OUTPERFORMING INITIAL EXPECTATIONS; FORECAST FOR 2021 RESIDENTIAL NOI FROM DEVELOPMENT INCREASED

→ DEVELOPMENT YIELDS WELL ABOVE PREVAILING MARKET CAP RATES; DEVELOPMENT STARTS INCREASED

➢ LEVERAGING PLATFORM STRENGTH ACROSS INVESTMENTS, DEVELOPMENT, AND OPERATIONS

→ PURSUING INVESTMENT OPPORTUNITIES IN RALEIGH-DURHAM, CHARLOTTE, AUSTIN AND DALLAS

→ RECENTLY OPENED OUR LATEST PRODUCT OFFERING, KANSO

➢ 10TH ANNUAL CORPORATE RESPONSIBILITY REPORT FURTHER ESTABLISHES AVB AS AN ESG LEADERIN THE REIT SPACE

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FORWARD-LOOKING STATEMENTS

➢ This presentation dated July 28, 2021 is provided in connection with AvalonBay’s second quarter 2021 earnings conference call on July 29, 2021. This presentation is intended to accompany AvalonBay’s earnings release dated July 28, 2021 and should be read in conjunction with the earnings release. AvalonBay does not intend to update any of these documents, which speak only as of their respective dates.

➢ The earnings release is available on AvalonBay’s website at www.avalonbay.com/earnings

➢ For definitions, additional information and reconciliations of non-GAAP financial information and certain defined terms included in this presentation, see pages 21 to 27 in this presentation in addition to Attachment 13 to the earnings release.

➢ This presentation dated July 28, 2021 contains forward-looking statements, which are indicated by the use of words such as “expects,” “projects,” “forecast,” “outlook,” “estimate” and other words that do not relate to historical matters. Actual results may differ materially. For information concerning risks and other factors that could cause such differences, see “Forward Looking Statements” in AvalonBay’s earnings release that accompanies this presentation. The Company does not undertake a duty to update the projections and expectations stated in this presentation, which speak only as of the date of this presentation unless otherwise referenced.

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DEFINITIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

AND OTHER TERMS

Average Rent per Home as calculated for certain Development communities in lease-up, reflects management’s projected stabilized rents net ofestimated stabilized concessions, including estimated stabilized other rental revenue and excluding projected commercial revenue. Projected stabilizedrents are based on one or more of the following: (i) actual average leased rents on apartments leased through quarter end, (ii) projected rollover rents onapartments leased through quarter end where the lease term expires within the first twelve months of Stabilized Operations and (iii) Market Rents onunleased homes.

Core Urban submarkets contain our markets’ major urban job and culture hubs. These are the corridors where there is dense employment, as well asunique draws such as sports and arts, and where households live in dense high-rise communities (e.g., Manhattan, San Francisco, CA).

FFO and Core FFO are considered by management to be supplemental measures of our operating and financial performance. FFO is calculated by theCompany in accordance with the definition adopted by NAREIT. FFO is calculated by the Company as Net income or loss attributable to commonstockholders computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, cumulativeeffect of a change in accounting principle, impairment writedowns of depreciable real estate assets, write-downs of investments in affiliates which aredriven by a decrease in the value of depreciable real estate assets held by the affiliate and depreciation of real estate assets, including adjustments forunconsolidated partnerships and joint ventures. By excluding gains or losses related to dispositions of previously depreciated operating communities andexcluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful lifeestimates), FFO can help one compare the operating and financial performance of a company’s real estate between periods or as compared to differentcompanies. Core FFO is the Company’s FFO as adjusted for non-core items outlined in the table below. By further adjusting for items that are notconsidered by us to be part of our core business operations, Core FFO can help one compare the core operating and financial performance of theCompany between periods. A reconciliation of Net income attributable to common stockholders to FFO and to Core FFO is as follows (dollars inthousands):

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AND OTHER TERMSQ2 Q2 YTD YTD

2021 2020 2021 2020

Net income attributable to common stockholders 447,953$ 170,828$ 590,176$ 338,799$

Depreciation - real estate assets, including joint venture adjustments 183,257 175,558 365,571 352,986

Distributions to noncontrolling interests 12 12 24 24

Gain on sale of unconsolidated entities holding previously depreciated real estate (23,305) - (23,305) -

Gain on sale of previously depreciated real estate (334,569) (35,295) (388,296) (59,731)

Casulty and impairment (recovery) loss on real estate 1,177 - 1,177 -

FFO attributable to common stockholders 274,525 311,103 545,347 632,078

Adjusting items:

Unconsolidated entity (gains) losses (2,233) - (2,132) -

Business interruption insurance proceeds - (103) - (103)

Lost NOI from casualty losses covered by business interruption insurance - 48 - 48

Loss (gain) on extinguishment of consolidated debt - 268 (122) 9,438

Gain on interest rate contract - - (2,654) -

Advocacy contributions - 1,465 - 1,766

Executive transition compensation costs 407 - 2,188 -

Severance related costs 102 89 102 2,040

Development pursuit write-offs and expensed transaction costs, net of recoveries 527 269 302 3,389

Gain on for-sale condominiums (575) (2,544) (706) (7,447)

For-sale condominium marketing, operating and administrative costs 1,222 1,196 2,266 2,639

For-sale condominium imputed carry cost 1,979 2,824 4,131 6,433

Gain on other real estate transactions, net (32) (156) (459) (199)

Legal settlements 1,018 (67) 1,078 (24)

Income tax expense (benefit) 10 (1,133) (745) (1,042)

Core FFO attributable to common stockholders 276,950$ 313,259$ 548,596$ 649,016$

Average shares outstanding - diluted 139,650,639 140,738,160 139,601,526 140,752,331

Earnings per share - diluted 3.21$ 1.21$ 4.23$ 2.41$

FFO per common share - diluted 1.97$ 2.21$ 3.91$ 4.49$

Core FFO per common share - diluted 1.98$ 2.23$ 3.93$ 4.61$

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AND OTHER TERMS

Initial Projected Stabilized Yield is Projected NOI as a percentage of Total Capital Cost. The weighted average Projected NOI as a percentage of TotalCapital Cost is weighted based on the Total Capital Cost of each community.

Job-Centered Suburban submarkets are submarkets that are too low-density to be considered urban and are organized around a suburban, employmentnode (e.g., Stamford, CT, Redmond, WA).

Like-Term Effective Rent Change represents the percentage change in effective rent between two leases of the same lease term category for the sameapartment. The Company defines effective rent as the contractual rent for an apartment less amortized concessions and discounts. Average Like-TermEffective Rent Change is weighted based on the number of leases meeting the criteria for new move-in and renewal like-term effective rent change. NewMove-In Like-Term Effective Rent Change is the change in effective rent between the contractual rent for a resident who moves out of an apartment, andthe contractual rent for a resident who moves into the same apartment with the same lease term category. Renewal Like-Term Effective Rent Change isthe change in effective rent between two consecutive leases of the same lease term category for the same resident occupying the same apartment.

Market Capitalization Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming norepositioning), less estimates for non-routine allowance of approximately $300 - $500 per apartment home, divided by the gross sales price for thecommunity. Projected NOI, as referred to above, represents management’s estimate of projected rental revenue minus projected operating expensesbefore interest, income taxes (if any), depreciation and amortization. For this purpose, management’s projection of operating expenses for thecommunity includes a management fee of 2.25%. The Market Capitalization Rate, which may be determined in a different manner by others, is a measurefrequently used in the real estate industry when determining the appropriate purchase price for a property or estimating the value for a property. Buyersmay assign different Market Capitalization Rates to different communities when determining the appropriate value because they (i) may project differentrates of change in operating expenses and capital expenditure estimates and (ii) may project different rates of change in future rental revenue due todifferent estimates for changes in rent and occupancy levels. The weighted average Market Capitalization Rate is weighted based on the gross sales priceof each community.

Market Rents as reported by the Company are based on the current market rates set by the Company based on its experience in renting apartments andpublicly available market data. Trends in Market Rents for a region as reported by others could vary. Market Rents for a period are based on the averageMarket Rents during that period and do not reflect any impact for cash concessions.

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AND OTHER TERMS

Move-in Rent Value reflects the average effective rent that our apartments would rent for based on recent leasing activity, adjusting for apartmentspecific characteristics (e.g., view premiums, renovation premiums). For a given month, up to the ten most recent leases during the immediatelypreceding last three months are used for each unit type at a property. If no recent leasing activity has occurred for a sparse unit type, then active leasesor current asking rents, in that order, would be used.

Other Suburban submarkets are suburban submarkets that are not job-centered suburban submarkets (e.g., Acton, MA, Santa Clarita, CA).

25


AND OTHER TERMS

Projected FFO and Projected Core FFO are calculated on a basis consistent with historical FFO and Core FFO, and are therefore considered to beappropriate supplemental measures to projected Net Income from projected operating performance. A reconciliation of the ranges provided forProjected FFO per share (diluted) for the third quarter 2021 to the ranges provided for projected EPS (diluted) and corresponding reconciliation of theranges for Projected FFO per share to the ranges for Projected Core FFO per share are as follows:

LOW HIGH

RANGE RANGE

Projected EPS (diluted) - Q3 2021 0.48$ 0.58$

Depreciation (real estate related) 1.33 1.33

Projected FFO per share (diluted) - Q3 2021 1.81$ 1.91$

Loss on extinguishment of consolidated debt 0.13 0.13

Adjustments related to residential for-sale condominiums at The Park Loggia 0.01 0.01

Unconsolidated entity (gain) loss (0.05) (0.05)

Other 0.01 0.01

Projected Core FFO per share (diluted) - Q3 2021 1.91$ 2.01$

Projected EPS (diluted) - Full Year 2021 6.67$ 6.87$

Depreciation (real estate related) 5.28 5.28

Gain on sale of communities (4.20) (4.20)

Projected FFO per share (diluted) - Full Year 2021 7.75$ 7.95$

Loss on extinguishment of consolidated debt and gain on interest rate contract 0.11 0.11

Adjustments related to residential for-sale condominiums at The Park Loggia 0.06 0.06

Unconsolidated entity (gain) loss (0.06) (0.06)

Legal and other settlements 0.03 0.03

Executive transition compensation costs 0.02 0.02

Other 0.01 0.01

Projected Core FFO per share (diluted) - Full Year 2021 7.92$ 8.12$

26


AND OTHER TERMS

Projected NOI, as used within this presentation for certain Development Communities and in calculating the Market Capitalization Rate for dispositions,represents management’s estimate, as of the date of this presentation (or as of the date of the buyer’s valuation in the case of dispositions), of projectedstabilized rental revenue minus projected stabilized operating expenses. For Development communities, Projected NOI is calculated based on the firsttwelve months of Stabilized Operations following the completion of construction. In calculating the Market Capitalization Rate, Projected NOI fordispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue representsmanagement’s estimate of projected gross potential minus projected stabilized economic vacancy and adjusted for projected stabilized concessions plusprojected stabilized other rental revenue. Projected stabilized operating expenses do not include interest, income taxes (if any), depreciation oramortization, or any allocation of corporate-level property management overhead or general and administrative costs. In addition, projected stabilizedoperating expenses for Development communities do not include property management fee expense. Projected gross potential for Developmentcommunities and dispositions is generally based on leased rents for occupied homes and management’s best estimate of rental levels for homes whichare currently unleased, as well as those homes which will become available for lease during the twelve month forward period used to develop ProjectedNOI. The weighted average Projected NOI as a percentage of Total Capital Cost ("Weighted Average Initial Projected Stabilized Yield") is weighted basedon the Company’s share of the Total Capital Cost of each community, based on its percentage ownership.

Management believes that Projected NOI of the Development communities, on an aggregated weighted average basis, assists investors in understandingmanagement's estimate of the likely impact on operations of the Development communities when the assets are complete and achieve stabilizedoccupancy (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense). However, inthis presentation the Company has not given a projection of NOI on a company-wide basis. Given the different dates and fiscal years for which NOI isprojected for these communities, the projected allocation of corporate-level property management overhead, general and administrative costs andinterest expense to communities under development is complex, impractical to develop, and may not be meaningful. Projected NOI of thesecommunities is not a projection of the Company's overall financial performance or cash flow. There can be no assurance that the communities underdevelopment will achieve the Projected NOI as described in this presentation.

Same Store is comprised of consolidated communities in the markets where the Company has a significant presence and where a comparison ofoperating results from the prior year to the current year is meaningful, as these communities were owned and had Stabilized Operations, as definedbelow, as of the beginning of the respective prior year period. Therefore, for 2021 operating results, Same Store is comprised of consolidatedcommunities that have Stabilized Operations as of January 1, 2020, are not conducting or are not probable to conduct substantial redevelopmentactivities and are not held for sale or probable for disposition within the current year.

27


AND OTHER TERMS

Secondary Urban submarkets are submarkets that are dense enough to be considered urban but are not a core central attraction. Rather, most of theseare adjacent to core urban submarkets. These are often mass transit served and are denser, high-rise and mid-rise locations that offer quick access andmay have office and commercial corridors of their own (e.g., Hoboken, NJ, Emeryville, CA).

Stabilized Operations is defined as the earlier of (i) attainment of 90% physical occupancy or (ii) the one-year anniversary of completion of developmentor redevelopment.

Suburban Communities are communities located in submarkets with less than 3,500 households per square mile.

Total Capital Cost includes all capitalized costs projected to be or actually incurred to develop the respective Development or Redevelopment community,including land acquisition costs, construction costs, real estate taxes, capitalized interest and loan fees, permits, professional fees, allocated developmentoverhead and other regulatory fees, offset by proceeds from the sale of any associated land or improvements, all as determined in accordance withGAAP. Total Capital Cost also includes costs incurred related to first generation commercial tenants, such as tenant improvements and leasingcommissions. For Redevelopment communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. Withrespect to communities where development or redevelopment was completed in a prior or the current period, Total Capital Cost reflects the actual costincurred, plus any contingency estimate made by management. Total Capital Cost for communities identified as having joint venture ownership, eitherduring construction or upon construction completion, represents the total projected joint venture contribution amount. For joint ventures not inconstruction, Total Capital Cost is equal to gross real estate cost.

Urban Communities are communities located in submarkets with 3,500 households or more per square mile.

INVESTOR TELECONFERENCE PRESENTATION

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