S&P withdraws AvalonBay ratings following completed merger

S&P Global has withdrawn its credit ratings for AvalonBay Communities, Inc. following the completion of its merger with Equity Residential. The merger, which was approved by shareholders of both companies, is expected to close on August 17, 2026, with the combined entity operating under the name Vivmark Residential and trading on the New York Stock Exchange under the ticker symbol “VMRK” beginning August 18, 2026.

The merger, structured as an all-stock transaction, will result in AvalonBay shareholders receiving 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock owned. Upon closing, AvalonBay shareholders will own approximately 51.2% of the combined company, while Equity Residential shareholders will own approximately 48.8%.

The combined company is expected to have a pro forma equity market capitalization of approximately $52 billion and an enterprise value of approximately $69 billion, with more than 180,000 rental apartments across the United States. The merger is anticipated to generate $175 million of gross synergies and $125 million of net synergies after real estate tax reassessments.

S&P’s decision to withdraw AvalonBay’s ratings reflects the structural transformation of the company through the merger. The combined entity will operate with dual headquarters in Arlington, Virginia, and Chicago, Illinois, and will be led by Benjamin Schall, the current CEO of AvalonBay, who will serve as CEO of the new company.

The merger is expected to qualify as a tax-free reorganization for U.S. federal income tax purposes. The combined company will maintain an initial annualized dividend of $2.81 per share, equivalent to Equity Residential’s existing dividend and higher than AvalonBay’s current yield.

The transaction is supported by a range of financial advisors, including Goldman Sachs & Co. LLC for AvalonBay and Morgan Stanley & Co. LLC for Equity Residential. Investors and security holders are encouraged to review the detailed information provided in the Registration Statement and Joint Proxy Statement/Prospectus filed with the SEC for further insights into the merger and its implications.