Vivmark Residential completes $24.7 billion AvalonBay merger

Vivmark Residential (VMRK) completed its merger with AvalonBay Communities on Aug. 17, 2026, with consideration transferred of about $24.7 billion. Equity Residential changed its name to Vivmark Residential at closing. The deal was a reverse acquisition: Equity Residential is the legal acquirer and AvalonBay the accounting acquirer.

Shares were little changed after hours at 5:09 p.m. ET.

Under a May 20, 2026 merger agreement, AvalonBay merged into Canopy Merger Sub LLC, a wholly owned subsidiary of Vivmark Residential, which then merged into ERP Operating Limited Partnership (ERPOP), the surviving entity.

Each AvalonBay common share converted into 2.793 Vivmark Residential common shares. Legacy Equity Residential shareholders hold about 49% and former AvalonBay stockholders about 51%. About 772.7 million common shares were outstanding immediately after the merger. Consideration was measured at an AvalonBay closing price of $184.06 as of Aug. 14, 2026.

Transaction costs are estimated at about $725.0 million. About $568.8 million was incurred and is in historical results through Sept. 30, 2026. Of the remaining $156.2 million, $151.9 million covers integration and compensation costs; the other $4.2 million is in the pro forma statements.

The company is sole general partner of ERPOP and owned about 98.7% of it as of Sept. 30, 2026. Limited partners own 1.3%.

The pro forma statements cover the year ended Dec. 31, 2025 and the nine months ended Sept. 30, 2026, as if the merger occurred Jan. 1, 2025.

For the nine months, pro forma revenue was $4.70 billion, versus $2.74 billion historical. Pro forma net income available to common shares was $547.3 million, or 70 cents per diluted share.

For 2025, pro forma revenue was $6.14 billion. Net loss available to common shares was $49.4 million, or a loss of 6 cents per share.

Pro forma depreciation for the nine months was $1.40 billion. The statements remove $1.2 billion of Equity Residential's historical depreciation and recognize $702.4 million based on fair values of the acquired real estate.

No goodwill was recognized, because the fair value of identifiable net assets equaled consideration transferred. Total real estate was provisionally valued at $32.79 billion. The company assumed $9.00 billion of total liabilities, including $6.61 billion of unsecured debt, net, and $1.52 billion of mortgage notes payable, net. The allocation is provisional; measurement-period adjustments may be recorded for up to one year from closing.

ERPOP repaid at maturity all outstanding 7.57% Notes due Aug. 15, 2026. The New York Stock Exchange delisting of the notes was effective Aug. 27, 2026.

The pro forma figures reflect no expected cost savings or synergies. Balance sheets as of Sept. 30, 2026 appear in the combined quarterly report filed Nov. 9, 2026.