Form 4: AvalonBay Communities Director Acquires Shares Through Deferred Stock Units

Director Ronald L. Havner Jr. acquired 120 shares of AvalonBay Communities Inc. through deferred stock units (DSUs) in lieu of quarterly cash director's fees.

Summary

• On May 20, 2025, Ronald L. Havner Jr., a director of AvalonBay Communities Inc., acquired 120 shares of common stock through the grant of Deferred Stock Units (DSUs).
• These DSUs were received in lieu of the quarterly cash director's fee, as per the director's prior election under the company's Second Amended and Restated 2009 Equity Incentive Plan.
• The DSUs will convert into common stock on a one-for-one basis when the reporting person ceases to be a director of the issuer.
• Following the transaction, Havner directly owns 17,623.1891 shares of AvalonBay Communities Inc. common stock, including the newly acquired Units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction that aligns director interests with shareholders, indicating confidence in the company's future.

Positives

• The acquisition of shares by a director demonstrates confidence in the company.
• The use of Deferred Stock Units aligns the director's interests with the long-term performance of the company.

Future Outlook

The Deferred Stock Units will convert into common stock on a one-for-one basis when the reporting person ceases to be a director of the issuer.

Industry Context

Director share acquisitions are common in the real estate investment trust (REIT) sector, often used to align management and board interests with shareholder value. This transaction is a routine part of director compensation.

Comparison to Industry Standards

• Director compensation packages in REITs often include a mix of cash and equity.
• Deferred Stock Units are a common tool used to incentivize long-term performance and align director interests with shareholders.
• Companies like Equity Residential (EQR) and UDR often use similar equity-based compensation for their directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with long-term company performance.

Key Dates

Keywords

AvalonBay Communities, Director, Ronald L. Havner Jr., Deferred Stock Units, DSUs, Equity Incentive Plan, Common Stock, Beneficial Ownership, Form 4