Co Living

FlexOffice 2018 Sept.
12-14, 2018
Coliving
Sandy Albert, Common Living Inc.

Chris Bledsoe, Ollie
Sean Clark, AvalonBay Communities
Speakers
Sandy Albert Chris Bledsoe Sean Clark

Director, Real Estate, CEO & Co-founder, Ollie Senior Vice President,
Common Living Inc. AvalonBay Communities
1
FlexOffice 2018 Sept. 12-14, 2018
Chris Bledsoe
Ollie
chris@ollie.co
Humanization of Housing
Self
Actualization:
achieving one’s full Self-fulfilling Needs
potential, including
creative activities
The Future
Esteem needs:
prestige and feeling of accomplishment
Psychological Needs
Belongingness and love needs:
intimate relationships, friends
Safety needs:
security and safety
Existing Housing Basic Needs
Physiological needs:
food, water, shelter, rest
Confidential. Not for distribution.

© 2018 Ollie
2
The Big idea is actually small
500 sqft 300 sqft
…and shared
3
Our high-end design
Our robust amenities
4
Our emphasis on micro-housing
Our complete tech-enabled coliving ecosystem
Bedvetter Ollie Social Ollie Box Shop
5
scale of projects in our pipeline
Design Ethos

© 2018 Ollie
6
Design Ethos

© 2018 Ollie
Design Ethos

© 2018 Ollie
7
Sandy Albert
Common Living Inc.

sandy.albert@common.com
(917) 965 4399
common.com
8
Common Living, Inc.

Common is a technology- and community-focused residential
operator working with RE partners to better serve the immense
demand for how people live today.
Using our signature approach to perfecting the modern rental

experience, Common designs and operates coliving and
traditional apartments in New York City, Chicago, San
Francisco, Seattle and Washington, D.C.
Common relies on its proprietary technology, beautifully

designed spaces, and superior tenant-facing services to
fundamentally improve the residential rental experience for its
nationwide member network.
Today’s Renter Is Different
9
An Enormous Demographic Comes of Age
Millennials have entered their prime spending years and will reshape how companies and entire industries, including real estate,
do business. Millennials are the largest generation in US history and have come of age in a time of rapid technological
change, globalization and economic disruption.
Millennials Generation X Baby Boomers

92 million 61 million 72 million
A Different Kind of Renter

Educated, But Drowning in Debt Putting Off Major Life Decisions
Millennials are on track to be our most educated generation ever; however, With less to spend, Millennials are putting off commitments like home
lower employment levels and record levels of student debt have left younger
ownership and parenthood. Compared to their grandparents, Millennials
Millennials with less money than previous generations. Almost 40% of those
are less than half as likely to be married and living in their own
under 30 have outstanding student loans.
household. With less pressure, they have more flexibility in moving and
job selection.
% of 18-31 year olds married and living in their own
household
10
Marriage can wait

Millennials are delaying marriage and buying fewer homes than ever before. In 1960, the
average groom was 23 years old and the average bride just over 20 years old. Today, the
average age of marriage is just shy of 30 years old.
% of 18-31 year olds married and living in their own household

Source: Pew Research Center
Flexibility and work/life

balance
It is now the norm for Millennials to switch jobs four

times in their first decade out of college; nearly
double the number of job changes of the previous
generation.
11
Increasingly
independent, and
access over
ownership.
More than 3 in 4 millennials (78%) would choose to
spend money on an experience or event over
buying something, according to Forbes. They prefer
to be involved in their communities rather than
paying for the privacy of ownership.
40%
Movement of 18-29 year olds from cities to suburbs
has declined by 40% in the past 20 years. Young
people are staying in cities longer.
A changing housing landscape
12
NYC household composition

From 2005 to 2015, the number of individuals living with roommates increased by more than Source: The Real Deal,
Roommates aren't just for millennials
20%. Here’s the current breakdown:
60% 71% 64%
26%
22%
14%
11%
8% 8%
5% 3% 5%
Family Shared Alone Other Family Shared Alone Other Family Shared Alone Other
Age 18-35 Age 36-55 Age 55+
From 2000-2010, rents increased by 12%

nationally, but median income fell by 7%
Source: 1960-2000 Decennial Censuses and 2010-2014 American Community Surveys
170%
160%
150%
140%
130%
120%
110%
100%
1960
1960 1970 1980 1990 2000 2010
Real household income Real median rent
13
Convenience, Community, and Affordability
14
...Powered by Technology
Convenience for Members

Renting in a Common home allows tenants to skip the
bother and headache associated with setting up a home.
Common suites come fully furnished, and rent includes:
● Biweekly housekeeping
● All utilities and high-speed wifi
● Shared goods, such as paper towels and dish soap
● In-unit or in-building washer/dryers
● Invitations to curated community events
Common also offers additional products such as renters’

insurance, security deposit guarantees and even bed linens
for additional cost.
15
Focus on Community
When it comes to community, we know what works and,
more importantly, what doesn’t. Through our operating
experiences, we found that residents want community that is
organic and spontaneous rather than top-down activities that
can feel contrived and manufactured.
Common cultivates community through:

● Purposefully designed shared physical spaces to
encourage spontaneous gathering
● Member-led and -organized events promoted through
Common’s proprietary app
● Regularly scheduled city-wide events to expand and
develop broader member networks
Technology Forward
Common has built proprietary technology and re-thought how
technology can be weaved throughout the entire lifecycle of a
Common member, with:
● Building brand awareness through digital advertising and

robust social media presence
● Touring homes online and through virtual reality
● Signing and accessing leases digitally
● Installing digital door locks with smartphone interface
● Member communication channels to Common through email,
text or phone
● Integration with the Common community through proprietary
mobile app
16
17
We are the industry

leader in coliving design
and operations
The Common brand is recognized globally and our homes enjoy low
vacancy rates.
Through thoughtful design, we are able to create high-density homes

that enhance the advantages of shared living while eliminating the
pain points.
Everything is calibrated: we know how many rooms should fit into a

home and how much fridge space a member needs.
Common
18
Common
19
Sean Clark
AvalonBay Communities
sean_clark@avalonbay.com
ABOUT
AVALONBAY
16
Avalon Brooklyn Bay
Brooklyn, NY
20
About AvalonBay
AVALONBAY AT A GLANCE
$31B 287 20 $2.8B

TOTAL ENTERPRISE VALUE APARTMENT COMMUNITIES U.S. MARKETS UNDER CONSTRUCTION
13.2% 5.3%
ANNUALIZED TOTAL SHAREHOLDER ANNUALIZED DIVIDEND GROWTH
RETURN SINCE IPO SINCE IPO
AVALONBAY IS AN EQUITY REIT IN THE BUSINESS OF DEVELOPING, REDEVELOPING, ACQUIRING, AND MANAGING

APARTMENT COMMUNITIES IN LEADING METROPOLITAN AREAS PRIMARILY IN NEW ENGLAND, THE NEW YORK /
NEW JERSEY METRO AREA, THE MID‐ATLANTIC, THE PACIFIC NORTHWEST, AND NORTHERN AND SOUTHERN
CALIFORNIA
S&P 500 COMPANY
Source: Company reports.
Data as of June 30, 2018.
Initial public offering (IPO), November 11, 1993.
Total shareholder return calculated as the change in the value over the period stated with all dividends reinvested. Dividend growth includes AVN & BYA dividends prior to merger.
About AvalonBay
SOURCES OF ALPHA
U.S. APARTMENT MARKETS
MARKET SELECTION
(COASTAL; HIGH COST OF HOMEOWNERSHIP)
OPERATING PLATFORM
(SCALE; TECHNOLOGY)
GROWTH PLATFORMS
(ACQUISITIONS; DEVELOPMENT; REDEVELOPMENT)
PORTFOLIO MANAGEMENT
(MARKET; SUBMARKET; BRAND ALLOCATION)
CAPITAL MANAGEMENT
(SOURCING; BALANCE SHEET MANAGEMENT)
TOTAL INVESTMENT RETURN
Conceptual presentation. Not presented to scale.
21
About AvalonBay
STRONG DIVIDEND GROWTH TRACK RECORD

About AvalonBay
ANNUAL COMMON DIVIDENDS PAID PER SHARE
STRONG DIVIDEND GROWTH INDEXED TO 100 IN 1994
TRACK RECORD
400
ANNUAL COMMON DIVIDENDS PAID PER SHARE
INDEXED TO 100 IN 1994






400
300 





300 24 YEAR CAGR= 5.3%
24 YEAR CAGR= 5.3%
200
200
100
100
‐
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
‐ Source: Company reports.
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
19
About AvalonBay
OPERATING A HIGH‐QUALITY, DIVERSE PORTFOLIO

GARDEN MID-RISE HIGH-RISE
AVALON HUNTINGTON STATION AVA WHEATON AVALON NORTH STATION

HUNTINGTON STATION, NY SILVER SPRING, MD BOSTON, MA
EAVES RANCHO PENASQUITOS AVALON WEST HOLLYWOOD AVA 55 NINTH

SAN DIEGO, CA HOLLYWOOD, CA SAN FRANCSICO, CA
The Company defines urban submarkets as those with more than 3,500 households per square mile; all other submarkets are considered suburban.
20
AVERAGE COMMUNITY AGE = 19 YEARS
URBAN | SUBURBAN MIX = 36% | 64%
22
GROWTH STRATEGY
27
Avalon North Station
Boston, MA
Growth Strategy
MULTIPLE GROWTH PLATFORMS
DEVELOPMENT ACQUISITIONS | DISPOSITIONS

Growing the portfolio Shaping the portfolio
REDEVELOPMENT MERGERS & ACQUISITIONS

Positioning the portfolio Transforming the portfolio
23
Growth Strategy
DEVELOPMENT HAS PROVIDED CONSISTENTLY PROFITABLE EXTERNAL

GROWTH FOR AVB…
AVB DEVELOPMENT YIELDS AND TRANSACTION CAPITALIZATION RATES
1999 – 2017
12%
8%
4%
‐
1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
AVB DEVELOPMENT COMPLETION YIELD
AVB WEIGHTED AVERAGE DISPOSITION CAPITALIZATION RATE (1999 ‐ 2010) |
ESTIMATED DEVELOPMENT COMPLETION MARKET CAPITALIZATION RATE (2011 ‐ 2017)
Growth Strategy
…AND WILL CONTINUE TO BE A PRIMARY DRIVER OF GROWTH

DEVELOPMENT STARTS
2018 PROJECTED
DEVELOPMENT ACTIVITY UNDERWAY 2
$ BILLIONS
AS A % OF TOTAL ENTERPRISE VALUE
1
5 ‐ 25%
'05 '07 '09 '11 '13 '15 '17
4 20%
$ BILLIONS
3 15%
2 10%
1 5%
‐ ‐
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PROJECTED(1)
DEVELOPMENT VOLUME UNDERWAY AT YEAR‐END % OF TOTAL ENTERPRISE VALUE (RIGHT AXIS)
Projection as of June 30, 2018.
(1) Assumes Total Enterprise Value as of June 30, 2018.
24
PORTFOLIO
MANAGEMENT
34
Avalon West Hollywood
West Hollywood, CA
Portfolio Management
25+ YEAR FOCUS ON ATTRACTIVE COASTAL MARKETS

PACIFIC NORTHWEST
6% OF NOI
21 COMMUNITIES
5,583 HOMES NEW ENGLAND
14% OF NOI
52 COMMUNITIES
12,879 HOMES
NORTHERN CALIFORNIA
20% OF NOI METRO NY/NJ
44 COMMUNITIES COMMUNITIES 287 23% OF NOI
13,037 HOMES HOMES 84,043 59 COMMUNITIES
16,759 HOMES
MARKETS 20
MID‐ATLANTIC
Q2 2018 SAME‐STORE 16% OF NOI
71%
SOUTHERN CALIFORNIA OPERATING MARGIN 43 COMMUNITIES
21% OF NOI 15,591 HOMES
62 COMMUNITIES
18,208 HOMES
% of NOI represents each region’s % of total NOI for Q2 2018, including amounts related to communities that have been sold or that are classified as held for sale.
Map excludes 1,636 apartment homes in Denver and Southeast FL and non‐core markets.
Operating margin defined as same‐store NOI divided by same‐store revenue as reported by S&P Global.
25
EXPANSION MARKETS ENHANCE PORTFOLIO DIVERSIFICATION

6%
PACIFIC
NORTHWEST 7%
NEW
14% ENGLAND
23%
20% 12%
NORTHERN
16% 16% 20%
CALIFORNIA
DENVER METRO NY/NJ
5%
15%
MID‐ATLANTIC
21%
20%
SOUTHERN
CALIFORNIA
% OF NOI, PORTFOLIO AS OF Q2 2018 SOUTHEAST
5% FLORIDA
% OF NOI, FUTURE TARGET ALLOCATION (I.E., 10 YEARS)
OFFERING RESIDENTS DIVERSE CHOICES

LOCATION MIX
URBAN, 36%
BRAND ALLOCATION
PRODUCT TYPE SUBURBAN
TOD, 16%
SUBURBAN,
47%
HIGH‐RISE,
27% AVA, 10%
MID‐RISE, AVALON,
32% EAVES, 75%
15%
GARDEN,
41%
The Company defines urban submarkets as those with more than 3,500 households per square mile; all other submarkets are considered suburban.
26
MAKING PROGRESS IN OTHER IMPORTANT AREAS OF OUR

BUSINESS, TOO
CUSTOMER SATISFACTION ASSOCIATE ENGAGEMENT
#1 O N L I N E
REPUTATION
Among Public
29 NPS MID-LEASE
NET PROMOTER SCORE

4.4 GL AS S DOOR
R AT I N G
Multifamily REITs +7 Points from 2016 Score
TOP IN ASSOC I AT E
4.5 GOOGLE
R AT I N G 10%
ENGAGEMENT
Corporate Executive
Board Survey
8,568 Reviews
CORPORATE RESPONSIBILITY
LEADER IN SUSTAINABILITY ONE OF THE MOST
Awarded 4 Green Stars ADVANCED COMPANIES
IN THE UNITED STATES
Based on ESG (environmental,
social & governance performance)
CAPITAL
MANAGEMENT
42
Avalon Great Neck
Great Neck, NY
27
Capital Management
INTEGRATED CAPITAL MANAGEMENT
GUIDING PRINCIPLES
Match-Fund New Commitments
Manage Liquidity and Borrowing Capacity
Optimize Sourcing of Capital
Discussion
Demand, Design, Operating Module,

Business Module and Economy
28
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using the FlexOffice app
or
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Event code #7987
29

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FlexOffice 2018 Sept.

Sandy Albert, Common Living Inc.

Sandy Albert Chris Bledsoe Sean Clark

Confidential. Not for distribution.

The Big idea is actually small

500 sqft 300 sqft

Our high-end design

Our robust amenities

Our emphasis on micro-housing

Our complete tech-enabled coliving ecosystem

Bedvetter Ollie Social Ollie Box Shop

scale of projects in our pipeline

Confidential. Not for distribution.

Confidential. Not for distribution.

Confidential. Not for distribution.

Common Living Inc.

Common Living, Inc.

Using our signature approach to perfecting the modern rental

Common relies on its proprietary technology, beautifully

Today’s Renter Is Different

An Enormous Demographic Comes of Age

Millennials Generation X Baby Boomers

A Different Kind of Renter

Marriage can wait

% of 18-31 year olds married and living in their own household

Flexibility and work/life

It is now the norm for Millennials to switch jobs four

A changing housing landscape

NYC household composition

60% 71% 64%

Age 18-35 Age 36-55 Age 55+

From 2000-2010, rents increased by 12%

Real household income Real median rent

Convenience, Community, and Affordability

Convenience for Members

● Invitations to curated community events

Common also offers additional products such as renters’

Common cultivates community through:

● Building brand awareness through digital advertising and

We are the industry

Through thoughtful design, we are able to create high-density homes

Everything is calibrated: we know how many rooms should fit into a

$31B 287 20 $2.8B

AVALONBAY IS AN EQUITY REIT IN THE BUSINESS OF DEVELOPING, REDEVELOPING, ACQUIRING, AND MANAGING

STRONG DIVIDEND GROWTH TRACK RECORD

OPERATING A HIGH‐QUALITY, DIVERSE PORTFOLIO

AVALON HUNTINGTON STATION AVA WHEATON AVALON NORTH STATION

EAVES RANCHO PENASQUITOS AVALON WEST HOLLYWOOD AVA 55 NINTH

MULTIPLE GROWTH PLATFORMS

DEVELOPMENT ACQUISITIONS | DISPOSITIONS

REDEVELOPMENT MERGERS & ACQUISITIONS

DEVELOPMENT HAS PROVIDED CONSISTENTLY PROFITABLE EXTERNAL

…AND WILL CONTINUE TO BE A PRIMARY DRIVER OF GROWTH

25+ YEAR FOCUS ON ATTRACTIVE COASTAL MARKETS

EXPANSION MARKETS ENHANCE PORTFOLIO DIVERSIFICATION

OFFERING RESIDENTS DIVERSE CHOICES

MAKING PROGRESS IN OTHER IMPORTANT AREAS OF OUR

CUSTOMER SATISFACTION ASSOCIATE ENGAGEMENT

NET PROMOTER SCORE

Multifamily REITs +7 Points from 2016 Score

INTEGRATED CAPITAL MANAGEMENT

Match-Fund New Commitments

Manage Liquidity and Borrowing Capacity

Optimize Sourcing of Capital