What the AvalonBay, Equity Residential megamerger means for the apartment industry and rents

Key points

• The AvalonBay Communities Inc.
• Park Loggia condominium, center, is reflected in a building in New York, U.S. The biggest ever merger of real estate investment trusts — the combination of Equity Residential and AvalonBay, announced Thursday — has investors and analysts alike left with dropped jaws.
• The all-stock merger will have a market capitalization of about $52 billion and a total enterprise value of approximately $69 billion, according to a release.
• It will create one of the largest real estate companies in the U.S., with more than 180,000 rental apartments.
• "This combination creates a new and fundamentally stronger company with differentiated capabilities that will drive structurally superior cash flow generation, earnings and dividend growth, and value for shareholders," said Benjamin Schall, CEO of AvalonBay.