EQR Equity Residential

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): July 29, 2024

 

EQUITY RESIDENTIAL

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland	1-12252	13-3675988
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

	Two North Riverside Plaza Chicago, Illinois	60606
	(Address of Principal Executive Offices)	(Zip Code)

Registrant's telephone number, including area code: (312) 474-1300

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares of Beneficial Interest, $0.01 Par Value		EQR		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

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Item 2.02. Results of Operations and Financial Condition.

On July 29, 2024, Equity Residential issued a press release announcing its results of operations and financial condition as of June 30, 2024 and for the quarter and six months then ended. The press release is furnished as Exhibit 99.1. The information contained in this Item 2.02 on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any registration statement or other document filed by Equity Residential under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

 

Exhibit Number		Exhibit
99.1		Press Release dated July 29, 2024, announcing the results of operations and financial condition of Equity Residential as of June 30, 2024 and for the quarter and six months then ended.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		EQUITY RESIDENTIAL
Date: July 29, 2024		By:	/s/ Ian S. Kaufman
		Name:	Ian S. Kaufman
		Its:	Senior Vice President and Chief Accounting Officer
			(Principal Accounting Officer)

 

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Second Quarter 2024 Results

Table of Contents

 

Earnings Release		1 - 5
Consolidated Statements of Operations		6
Consolidated Statements of Funds From Operations and Normalized Funds From Operations		7
Consolidated Balance Sheets		8
Portfolio Summary		9
Portfolio Rollforward		10
Same Store Results		11 - 18
Debt Summary		19 - 21
Capital Structure		22
Common Share and Unit Weighted Average Amounts Outstanding		23
Development and Lease-Up Projects		24
Capital Expenditures to Real Estate		25
Normalized EBITDAre Reconciliations		26
Adjustments from FFO to Normalized FFO		27
Normalized FFO Guidance and Assumptions		28
Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms		29 - 34

 

 

 

Corporate Headquarters:
Two North Riverside Plaza
Chicago, IL 60606
(312) 474-1300

Information included in this supplemental package is unaudited.

 

 

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NEWS RELEASE - FOR IMMEDIATE RELEASE

July 29, 2024

Equity Residential Reports Second Quarter 2024 Results

Guidance Updated on Strong Operating Fundamentals

Chicago, IL – July 29, 2024 - Equity Residential (NYSE: EQR) today reported results for the quarter and six months ended June 30, 2024.

Second Quarter 2024 Results

All per share results are reported as available to common shares/units on a diluted basis.

			Quarter Ended June 30,
			2024				2023				$ Change				% Change
	Earnings Per Share (EPS)		$	0.47			$	0.37			$	0.10				27.0	%
	Funds from Operations (FFO) per share		$	0.94			$	0.93			$	0.01				1.1	%
	Normalized FFO (NFFO) per share		$	0.97			$	0.94			$	0.03				3.2	%

 

			Six Months Ended June 30,
			2024				2023				$ Change				% Change
	Earnings Per Share (EPS)		$	1.24			$	0.92			$	0.32				34.8	%
	Funds from Operations (FFO) per share		$	1.80			$	1.78			$	0.02				1.1	%
	Normalized FFO (NFFO) per share		$	1.91			$	1.82			$	0.09				4.9	%

 

Recent Highlights

 

"We are pleased to report results that exceeded our expectations and to be seeing positive forward momentum in our business which led us to significantly improve our guidance," said Mark J. Parrell, Equity Residential's President and CEO. "Our portfolio continues to benefit from steady demand from our well-employed, higher earning renter demographic, elevated single family housing costs and manageable new apartment supply across most of our markets. We also continue to see positive customer satisfaction and employee engagement results. I commend my colleagues across the Company for their work in obtaining these outstanding results."

 

 

 

 

 

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Full Year 2024 Guidance

The Company has revised its guidance for its full year 2024 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:

 

		Revised		Previous		Change at Midpoint
Same Store (includes Residential and Non-Residential):
Physical Occupancy		96.2%		95.9%		0.3%
Revenue change		2.9% to 3.5%		2.0% to 3.0%		0.7%
Expense change		2.5% to 3.5%		3.5% to 4.5%		(1.0%)
Net Operating Income (NOI) change		3.0% to 3.5%		1.0% to 2.6%		1.45%
EPS		$3.04 to $3.10		$2.91 to $3.01		$0.11
Growth at midpoint vs. 2023 actual		39.5%		34.5%
FFO per share		$3.72 to $3.78		$3.74 to $3.84		$(0.04)
Growth at midpoint vs. 2023 actual		0.0%		1.1%
Normalized FFO per share		$3.86 to $3.92		$3.80 to $3.90		$0.04
Growth at midpoint vs. 2023 actual		2.9%		1.9%

 

The change in the full year 2024 EPS guidance range is due primarily to higher expected property sale gains, partially offset by higher expected depreciation expense, higher expected other expenses and the items described below.

 

The change in the full year 2024 FFO per share guidance range is due primarily to higher expected other expenses, partially offset by the items described below.

 

The change in the full year 2024 Normalized FFO per share guidance range is due primarily to:

 

		Expected Positive/(Negative)  Impact
		Revised Full Year 2024 vs. Previous Full Year 2024
Same store NOI		$	0.07
Corporate overhead (1)			(0.02	)
Other items			(0.01	)
Net		$	0.04

 

 

The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.

 

Results Per Share

The changes in EPS for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 are due primarily to higher property sale gains, the various adjustment items listed on page 27 of this release and the items described below.

The per share changes in FFO for the quarter and six months ended June 30, 2024 compared to the same periods of 2023 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.

 

The per share changes in Normalized FFO are due primarily to:

 

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		Positive/(Negative) Impact
		Second Quarter 2024 vs. Second Quarter 2023				June YTD 2024 vs. June YTD 2023
Same store NOI		$	0.04			$	0.10
Lease-Up NOI		–					0.01
2024 and 2023 transaction activity impact on NOI, net			(0.01	)			(0.02	)
Corporate overhead			(0.01	)			(0.02	)
Other items			0.01				0.02
Net		$	0.03			$	0.09

 

Same Store Results

The following table shows the total same store results for the periods presented (includes Residential and Non-Residential).

 

		Second Quarter 2024 vs. Second Quarter 2023		Second Quarter 2024 vs. First Quarter 2024		June YTD 2024 vs. June YTD 2023
Apartment Units		77,054		77,893		77,054
Physical Occupancy		96.4% vs. 95.9%		96.4% vs. 96.3%		96.3% vs. 95.9%
Revenues		2.9%		0.5%		3.5%
Expenses		2.7%		(2.6%)		2.0%
NOI		3.0%		2.0%		4.3%

 

The following table reflects the detail of the change in Same Store Residential Revenues, which is presented on a GAAP basis showing Leasing Concessions on a straight-line basis.

 

		Second Quarter 2024 vs. Second Quarter 2023				Second Quarter 2024 vs. First Quarter 2024				June YTD 2024 vs. June YTD 2023
		% Change				% Change				% Change
Same Store Residential Revenues-   comparable period
Lease rates			2.5	%			0.7	%			2.7	%
Leasing Concessions			(0.3	%)			0.0	%			(0.3	%)
Vacancy gain (loss)			0.4	%			(0.1	%)			0.4	%
Bad Debt, Net (1)			0.2	%			0.2	%			0.2	%
Other (2)			0.2	%			0.2	%			0.4	%
Same Store Residential Revenues-   current period			3.0	%			1.0	%			3.4	%

 

 

See page 12 for detail and reconciliations of Same Store Residential Revenues on a GAAP basis to Same Store Residential Revenues with Leasing Concessions on a cash basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Residential Same Store Operating Statistics

The following table includes select operating metrics for Residential Same Store Properties (for 77,054 same store apartment units):

		Q2 2024		Q1 2024
Physical Occupancy		96.4%		96.3%
Percentage of Residents Renewing by quarter		57.6%		61.1%
New Lease Change		0.2%		(2.2%)
Renewal Rate Achieved		5.0%		4.7%
Blended Rate (1)		2.9%		1.6%

 

 

June 2024 Blended Rate improved relative to April and May 2024. July 2024 Blended Rate is performing in line with the second quarter of 2024 and is consistent with expectations for this time of year. Management expects the third quarter of 2024 Blended Rate to increase between 2.0% and 3.0% which reflects typical seasonal moderation after the prime leasing season.

 

Investment Activity

Subsequent to the end of the second quarter of 2024, the Company acquired two properties consisting of 644 apartment units, located in Atlanta and Dallas/Ft. Worth, for an aggregate acquisition price of $216.8 million. The Company is also under contract to acquire an additional property consisting of 202 apartment units, located in Denver, for an acquisition price of $77.0 million.
 

During the second quarter of 2024, the Company acquired a 160 apartment unit property, located in suburban Boston and completed in 2023, for approximately $62.6 million at an Acquisition Cap Rate of 5.7%. During the second quarter of 2024, the Company sold two properties - one in suburban Washington, D.C. and one in San Francisco - consisting of 327 total apartment units, for an aggregate sale price of approximately $85.5 million at a weighted average Disposition Yield of 6.2%. The average age of the properties sold in the second quarter of 2024 was approximately 35 years.

 

During the first six months of 2024, the Company acquired the one property in suburban Boston described above. Also during the first six months of 2024, the Company sold five properties consisting of 831 apartment units, for an aggregate sale price of approximately $334.0 million at a weighted average Disposition Yield of 5.7%.

 

Third Quarter 2024 Guidance

The Company has established guidance ranges for the third quarter of 2024 EPS, FFO per share and Normalized FFO per share as listed below:

 

		Q3 2024 Guidance
EPS		$0.49 to $0.53
FFO per share		$0.94 to $0.98
Normalized FFO per share		$0.96 to $1.00

 

The difference between the second quarter of 2024 actual EPS of $0.47 and the third quarter of 2024 EPS guidance midpoint of $0.51 is due primarily to higher expected property sale gains and the items described below.

 

The difference between the second quarter of 2024 actual FFO of $0.94 per share and the third quarter of 2024 FFO guidance midpoint of $0.96 per share is due primarily to the items described below.

 

The difference between the second quarter of 2024 actual Normalized FFO of $0.97 per share and the third quarter of 2024 Normalized FFO guidance midpoint of $0.98 per share is due primarily to:

 

		Expected Positive/(Negative) Impact
		Third Quarter 2024 vs. Second Quarter 2024
Interest expense, net		$	(0.01	)
Corporate overhead			0.02
Net		$	0.01

 

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About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 299 properties consisting of 79,738 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

 

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, government regulations and competition. These and other risks and uncertainties are described under the heading “Risk Factors” in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

 

A live web cast of the Company’s conference call discussing these results will take place tomorrow, Tuesday, July 30, 2024 at 10:00 a.m. CT. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.

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Equity Residential

Consolidated Statements of Operations

(Amounts in thousands except per share data)

(Unaudited)

 

		Six Months Ended June 30,								Quarter Ended June 30,
		2024				2023				2024				2023
REVENUES
Rental income		$	1,464,981			$	1,422,397			$	734,163			$	717,309
EXPENSES
Property and maintenance			261,128				262,350				126,498				124,771
Real estate taxes and insurance			214,498				209,749				105,571				103,080
Property management			68,969				62,145				33,511				30,679
General and administrative			34,351				35,041				18,631				18,876
Depreciation			450,093				437,185				224,398				221,355
Total expenses			1,029,039				1,006,470				508,609				498,761
Net gain (loss) on sales of real estate properties			227,994				100,122				39,809				(87	)
Interest and other income			10,657				3,669				1,328				2,131
Other expenses			(45,123	)			(15,559	)			(13,385	)			(6,564	)
Interest:
Expense incurred, net			(133,040	)			(131,991	)			(65,828	)			(65,590	)
Amortization of deferred financing costs			(3,836	)			(3,996	)			(1,918	)			(2,017	)
Income before income and other taxes, income (loss) from    investments in unconsolidated entities and net gain (loss)    on sales of land parcels			492,594				368,172				185,560				146,421
Income and other tax (expense) benefit			(635	)			(634	)			(331	)			(336	)
Income (loss) from investments in unconsolidated entities			(3,372	)			(2,605	)			(1,674	)			(1,223	)
Net income			488,587				364,933				183,555				144,862
Net (income) loss attributable to Noncontrolling Interests:
Operating Partnership			(13,278	)			(11,613	)			(5,003	)			(4,554	)
Partially Owned Properties			(2,039	)			(2,082	)			(1,069	)			(1,105	)
Net income attributable to controlling interests			473,270				351,238				177,483				139,203
Preferred distributions			(902	)			(1,545	)			(355	)			(773	)
Premium on redemption of Preferred Shares			(1,444	)			—				—				—
Net income available to Common Shares		$	470,924			$	349,693			$	177,128			$	138,430
Earnings per share – basic:
Net income available to Common Shares		$	1.24			$	0.92			$	0.47			$	0.37
Weighted average Common Shares outstanding			378,699				378,492				378,578				378,642
Earnings per share – diluted:
Net income available to Common Shares		$	1.24			$	0.92			$	0.47			$	0.37
Weighted average Common Shares outstanding			390,548				391,063				390,542				391,187
Distributions declared per Common Share outstanding		$	1.35			$	1.325			$	0.675			$	0.6625

 

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Equity Residential

Consolidated Statements of Funds From Operations and Normalized Funds From Operations

(Amounts in thousands except per share and Unit data)

(Unaudited)

 

		Six Months Ended June 30,								Quarter Ended June 30,
		2024				2023				2024				2023
Net income		$	488,587			$	364,933			$	183,555			$	144,862
Net (income) loss attributable to Noncontrolling Interests – Partially    Owned Properties			(2,039	)			(2,082	)			(1,069	)			(1,105	)
Preferred distributions			(902	)			(1,545	)			(355	)			(773	)
Premium on redemption of Preferred Shares			(1,444	)			—				—				—
Net income available to Common Shares and Units			484,202				361,306				182,131				142,984
Adjustments:
Depreciation			450,093				437,185				224,398				221,355
Depreciation – Non-real estate additions			(1,897	)			(2,259	)			(942	)			(1,103	)
Depreciation – Partially Owned Properties			(1,089	)			(1,055	)			(547	)			(510	)
Depreciation – Unconsolidated Properties			1,452				1,226				1,117				594
Net (gain) loss on sales of real estate properties			(227,994	)			(100,122	)			(39,809	)			87
FFO available to Common Shares and Units			704,767				696,281				366,348				363,407
Adjustments (see note for additional detail):
Write-off of pursuit costs			1,369				1,993				821				661
Debt extinguishment and preferred share redemption (gains)    losses			1,444				47				—				47
Non-operating asset (gains) losses			(3,216	)			1,031				2,890				317
Other miscellaneous items			40,674				11,343				10,083				5,051
Normalized FFO available to Common Shares and Units		$	745,038			$	710,695			$	380,142			$	369,483
FFO		$	707,113			$	697,826			$	366,703			$	364,180
Preferred distributions			(902	)			(1,545	)			(355	)			(773	)
Premium on redemption of Preferred Shares			(1,444	)			—				—				—
FFO available to Common Shares and Units		$	704,767			$	696,281			$	366,348			$	363,407
FFO per share and Unit – basic		$	1.81			$	1.79			$	0.94			$	0.93
FFO per share and Unit – diluted		$	1.80			$	1.78			$	0.94			$	0.93
Normalized FFO		$	745,940			$	712,240			$	380,497			$	370,256
Preferred distributions			(902	)			(1,545	)			(355	)			(773	)
Normalized FFO available to Common Shares and Units		$	745,038			$	710,695			$	380,142			$	369,483
Normalized FFO per share and Unit – basic		$	1.91			$	1.82			$	0.98			$	0.95
Normalized FFO per share and Unit – diluted		$	1.91			$	1.82			$	0.97			$	0.94
Weighted average Common Shares and Units outstanding – basic			389,380				389,942				389,271				390,032
Weighted average Common Shares and Units outstanding – diluted			390,548				391,063				390,542				391,187

 

Note: See Adjustments from FFO to Normalized FFO for additional detail regarding the adjustments from FFO to Normalized FFO. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

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Equity Residential

Consolidated Balance Sheets

(Amounts in thousands except for share amounts)

(Unaudited)

 

		June 30,				December 31,
		2024				2023
ASSETS
Land		$	5,540,352			$	5,581,876
Depreciable property			23,004,377				22,938,426
Projects under development			188,283				78,036
Land held for development			64,781				114,300
Investment in real estate			28,797,793				28,712,638
Accumulated depreciation			(10,163,756	)			(9,810,337	)
Investment in real estate, net			18,634,037				18,902,301
Investments in unconsolidated entities1			341,871				282,049
Cash and cash equivalents			38,298				50,743
Restricted deposits			100,123				89,252
Right-of-use assets			450,796				457,266
Other assets			214,443				252,953
Total assets		$	19,779,568			$	20,034,564
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net		$	1,634,838			$	1,632,902
Notes, net			5,351,461				5,348,417
Line of credit and commercial paper			170,884				409,131
Accounts payable and accrued expenses			114,413				87,377
Accrued interest payable			65,585				65,716
Lease liabilities			309,182				311,640
Other liabilities			292,424				272,596
Security deposits			69,848				69,178
Distributions payable			263,668				259,231
Total liabilities			8,272,303				8,456,188
Commitments and contingencies
Redeemable Noncontrolling Interests – Operating Partnership			327,641				289,248
Equity:
Shareholders' equity:
Preferred Shares of beneficial interest, $0.01 par value;    100,000,000 shares authorized; 343,100 shares issued and    outstanding as of June 30, 2024 and 745,600 shares issued    and outstanding as of December 31, 2023			17,155				37,280
Common Shares of beneficial interest, $0.01 par value;    1,000,000,000 shares authorized; 379,086,882 shares issued    and outstanding as of June 30, 2024 and 379,291,417    shares issued and outstanding as of December 31, 2023			3,791				3,793
Paid in capital			9,590,105				9,601,866
Retained earnings			1,357,922				1,437,185
Accumulated other comprehensive income (loss)			6,914				5,704
Total shareholders’ equity			10,975,887				11,085,828
Noncontrolling Interests:
Operating Partnership			204,032				202,306
Partially Owned Properties			(295	)			994
Total Noncontrolling Interests			203,737				203,300
Total equity			11,179,624				11,289,128
Total liabilities and equity		$	19,779,568			$	20,034,564

 

1 Includes $279.8 million and $220.2 million in unconsolidated development projects as of June 30, 2024 and December 31, 2023, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.

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Equity Residential Portfolio Summary As of June 30, 2024

 

										% of Stabilized				Average
						Apartment				Budgeted				Rental
Markets/Metro Areas		Properties				Units				NOI				Rate
Established Markets:
Los Angeles			58				14,732				17.3	%		$	2,936
Orange County			12				3,718				5.0	%			2,914
San Diego			12				2,878				4.0	%			3,127
Subtotal – Southern California			82				21,328				26.3	%			2,958
Washington, D.C.			47				14,866				16.2	%			2,703
San Francisco			41				11,410				15.2	%			3,323
New York			34				8,536				14.2	%			4,610
Boston			27				7,237				11.9	%			3,595
Seattle			44				9,267				10.5	%			2,604
Subtotal – Established Markets			275				72,644				94.3	%			3,177
Expansion Markets:
Denver			10				3,001				3.0	%			2,407
Atlanta			7				2,111				1.6	%			2,050
Dallas/Ft. Worth			4				1,241				0.7	%			1,912
Austin			3				741				0.4	%			1,798
Subtotal – Expansion Markets			24				7,094				5.7	%			2,152
Total			299				79,738				100.0	%		$	3,087

 

 

		Properties		Apartment Units
Wholly Owned Properties		284		76,469
Partially Owned Properties – Consolidated		14		3,060
Partially Owned Properties – Unconsolidated		1		209
		299		79,738

 

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.

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Equity Residential

 

Portfolio Rollforward Q2 2024

($ in thousands)

 

		Properties				Apartment Units				Purchase Price				Acquisition Cap Rate
3/31/2024			299				79,688
Acquisitions:
Consolidated Rental Properties – Not Stabilized (1)			1				160			$	62,595				5.7	%
Unconsolidated Land Parcels (2)			—				—			$	33,394
										Sales Price				Disposition Yield
Dispositions:
Consolidated Rental Properties			(2	)			(327	)		$	(85,500	)			(6.2	%)
Completed Developments – Unconsolidated			1				209
Configuration Changes			—				8
6/30/2024			299				79,738

 

 

Portfolio Rollforward 2024

($ in thousands)

 

		Properties				Apartment Units				Purchase Price				Acquisition Cap Rate
12/31/2023			302				80,191
Acquisitions:
Consolidated Rental Properties – Not Stabilized (1)			1				160			$	62,595				5.7	%
Unconsolidated Land Parcels (2)			—				—			$	33,394
										Sales Price				Disposition Yield
Dispositions:
Consolidated Rental Properties			(5	)			(831	)		$	(334,000	)			(5.7	%)
Completed Developments – Unconsolidated			1				209
Configuration Changes			—				9
6/30/2024			299				79,738

 

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Equity Residential

 

 

Second Quarter 2024 vs. Second Quarter 2023

Same Store Results/Statistics Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

		Results												Statistics
Description		Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Q2 2024		$	718,169			$	224,525			$	493,644			$	3,107				96.4	%			11.7	%
Q2 2023		$	697,784			$	218,681			$	479,103			$	3,031				95.9	%			11.6	%
Change		$	20,385			$	5,844			$	14,541			$	76				0.5	%			0.1	%
Change			2.9	%			2.7	%			3.0	%			2.5	%

 

 

Second Quarter 2024 vs. First Quarter 2024

Same Store Results/Statistics Including 77,893 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

		Results												Statistics
Description		Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Q2 2024		$	723,146			$	226,320			$	496,826			$	3,096				96.4	%			11.7	%
Q1 2024		$	719,329			$	232,422			$	486,907			$	3,069				96.3	%			8.6	%
Change		$	3,817			$	(6,102	)		$	9,919			$	27				0.1	%			3.1	%
Change			0.5	%			(2.6	%)			2.0	%			0.9	%

 

 

June YTD 2024 vs. June YTD 2023

Same Store Results/Statistics Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands except for Average Rental Rate)

 

		Results												Statistics
Description		Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
June YTD 2024		$	1,432,565			$	455,437			$	977,128			$	3,093				96.3	%			20.2	%
June YTD 2023		$	1,383,857			$	446,721			$	937,136			$	3,004				95.9	%			20.7	%
Change		$	48,708			$	8,716			$	39,992			$	89				0.4	%			(0.5	%)
Change			3.5	%			2.0	%			4.3	%			3.0	%

 

 

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Equity Residential

 

Same Store Residential Revenues – GAAP to Cash Basis (1)

($ in thousands)

 

	Second Quarter 2024 vs. Second Quarter 2023								Second Quarter 2024 vs. First Quarter 2024								June YTD 2024 vs. June YTD 2023
	77,054 Same Store Apartment Units								77,893 Same Store Apartment Units								77,054 Same Store Apartment Units
	Q2 2024				Q2 2023				Q2 2024				Q1 2024				June YTD 2024				June YTD 2023
Same Store Residential Revenues (GAAP Basis)	$	691,798			$	671,601			$	696,769			$	689,803			$	1,376,668			$	1,330,997
Leasing Concessions amortized		4,911				3,179				5,014				5,155				9,964				5,940
Leasing Concessions granted (2)		(3,702	)			(4,004	)			(3,815	)			(4,935	)			(8,620	)			(8,162	)
Same Store Residential Revenues with Leasing   Concessions on a cash basis	$	693,007			$	670,776			$	697,968			$	690,023			$	1,378,012			$	1,328,775
% change - GAAP revenue		3.0	%							1.0	%							3.4	%
% change - cash revenue		3.3	%							1.2	%							3.7	%

 

 

 

Same Store Net Operating Income By Quarter

Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

		Q2 2024				Q1 2024				Q4 2023				Q3 2023				Q2 2023
Same store revenues		$	718,169			$	714,396			$	706,419			$	702,251			$	697,784
Same store expenses			224,525				230,912				216,956				222,907				218,681
Same store NOI		$	493,644			$	483,484			$	489,463			$	479,344			$	479,103

 

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Equity Residential

 

Same Store Residential Accounts Receivable Balances

Including 77,054 Same Store Apartment Units

($ in thousands)

 

Balance Sheet (Other assets):		June 30, 2024				March 31, 2024				June 30, 2023
Residential accounts receivable balances		$	16,271			$	18,120			$	26,534
Allowance for doubtful accounts			(11,147	)			(13,063	)			(22,217	)
Net receivable balances		$	5,124			$	5,057			$	4,317
Straight-line receivable balances		$	7,088		(1)	$	8,297			$	6,506

 

 

 

Same Store Residential Bad Debt

Including 77,054 Same Store Apartment Units

($ in thousands)

 

Income Statement (Rental income):		Q2 2024				Q1 2024				Q2 2023
Bad debts before governmental rental assistance		$	8,066			$	9,141			$	9,483
Governmental rental assistance received			(413	)			(430	)			(660	)
Bad Debt, Net		$	7,653			$	8,711			$	8,823
Bad Debt, Net as a % of Same Store Residential Revenues			1.1	%			1.3	%			1.3	%

 

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Equity Residential Second Quarter 2024 vs. Second Quarter 2023 Same Store Residential Results/Statistics by Market

 

																						Increase (Decrease) from Prior Year's Quarter
Markets/Metro Areas		Apartment Units				Q2 2024 % of Actual NOI				Q2 2024 Average Rental Rate				Q2 2024 Weighted Average Physical Occupancy %				Q2 2024 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,135				17.6	%		$	2,933				95.7	%			11.7	%			3.3	%			1.4	%			4.2	%			2.5	%			0.7	%			0.3	%
Orange County			3,718				5.1	%			2,914				95.9	%			10.8	%			3.7	%			3.5	%			3.8	%			3.8	%			0.0	%			0.2	%
San Diego			2,878				4.2	%			3,127				95.9	%			11.6	%			4.5	%			0.8	%			5.6	%			4.4	%			0.1	%			1.7	%
Subtotal – Southern California			20,731				26.9	%			2,957				95.8	%			11.5	%			3.6	%			1.6	%			4.3	%			3.0	%			0.5	%			0.5	%
Washington, D.C.			14,554				16.6	%			2,707				97.0	%			11.4	%			4.8	%			2.4	%			5.9	%			4.6	%			0.2	%			0.8	%
San Francisco			11,188				16.1	%			3,323				96.1	%			11.6	%			1.3	%			(2.0	%)			2.7	%			0.8	%			0.4	%			0.7	%
New York			8,536				14.1	%			4,610				97.4	%			9.5	%			3.1	%			5.0	%			1.7	%			2.7	%			0.3	%			(0.6	%)
Boston			7,077				11.3	%			3,609				96.7	%			11.4	%			4.2	%			5.0	%			4.0	%			4.0	%			0.2	%			(0.2	%)
Seattle			9,266				10.3	%			2,604				96.2	%			12.4	%			1.5	%			4.8	%			0.2	%			0.3	%			1.1	%			(2.0	%)
Denver			2,505				2.6	%			2,428				96.8	%			14.3	%			1.0	%			0.0	%			1.4	%			0.6	%			0.6	%			(2.8	%)
Other Expansion Markets			3,197				2.1	%			1,970				95.1	%			16.2	%			(0.7	%)			5.2	%			(4.9	%)			(1.0	%)			0.2	%			1.6	%
Total			77,054				100.0	%		$	3,107				96.4	%			11.7	%			3.0	%			2.6	%			3.2	%			2.5	%			0.5	%			0.1	%

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

 

 

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Equity Residential Second Quarter 2024 vs. First Quarter 2024 Same Store Residential Results/Statistics by Market

 

																						Increase (Decrease) from Prior Quarter
Markets/Metro Areas		Apartment Units				Q2 2024 % of Actual NOI				Q2 2024 Average Rental Rate				Q2 2024 Weighted Average Physical Occupancy %				Q2 2024 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,135				17.5	%		$	2,933				95.7	%			11.7	%			0.7	%			(5.6	%)			3.5	%			0.4	%			0.2	%			2.1	%
Orange County			3,718				5.1	%			2,914				95.9	%			10.8	%			0.2	%			0.2	%			0.2	%			0.5	%			(0.2	%)			3.4	%
San Diego			2,878				4.2	%			3,127				95.9	%			11.6	%			0.6	%			(1.7	%)			1.3	%			0.8	%			(0.2	%)			3.6	%
Subtotal – Southern California			20,731				26.8	%			2,957				95.8	%			11.5	%			0.6	%			(4.3	%)			2.5	%			0.5	%			0.1	%			2.5	%
Washington, D.C.			14,554				16.4	%			2,707				97.0	%			11.4	%			1.5	%			0.9	%			1.7	%			1.6	%			(0.1	%)			4.4	%
San Francisco			11,188				16.0	%			3,323				96.1	%			11.6	%			0.5	%			(9.1	%)			4.9	%			0.9	%			(0.4	%)			2.1	%
New York			8,536				14.0	%			4,610				97.4	%			9.5	%			0.7	%			(2.6	%)			3.2	%			0.4	%			0.4	%			3.0	%
Boston			7,077				11.2	%			3,609				96.7	%			11.4	%			2.6	%			(2.6	%)			4.7	%			1.5	%			1.0	%			4.0	%
Seattle			9,266				10.2	%			2,604				96.2	%			12.4	%			1.5	%			2.5	%			1.1	%			1.3	%			0.1	%			2.7	%
Denver			2,792				2.9	%			2,417				96.8	%			14.0	%			0.9	%			(4.0	%)			3.1	%			0.3	%			0.6	%			3.5	%
Other Expansion Markets			3,749				2.5	%			1,963				95.2	%			16.2	%			(0.2	%)			4.5	%			(3.7	%)			(0.2	%)			0.0	%			3.2	%
Total			77,893				100.0	%		$	3,096				96.4	%			11.7	%			1.0	%			(2.7	%)			2.8	%			0.9	%			0.1	%			3.1	%

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Equity Residential June YTD 2024 vs. June YTD 2023 Same Store Residential Results/Statistics by Market

 

																						Increase (Decrease) from Prior Year
Markets/Metro Areas		Apartment Units				June YTD 24 % of Actual NOI				June YTD 24 Average Rental Rate				June YTD 24 Weighted Average Physical Occupancy %				June YTD 24 Turnover				Revenues				Expenses				NOI				Average Rental Rate				Physical Occupancy				Turnover
Los Angeles			14,135				17.5	%		$	2,927				95.6	%			21.3	%			4.2	%			1.4	%			5.5	%			3.9	%			0.4	%			(0.1	%)
Orange County			3,718				5.2	%			2,907				96.0	%			18.2	%			4.8	%			3.5	%			5.2	%			4.9	%			(0.1	%)			0.2	%
San Diego			2,878				4.3	%			3,115				96.0	%			19.6	%			5.5	%			0.9	%			6.9	%			5.0	%			0.4	%			0.0	%
Subtotal – Southern California			20,731				27.0	%			2,950				95.7	%			20.5	%			4.5	%			1.7	%			5.7	%			4.2	%			0.3	%			0.0	%
Washington, D.C.			14,554				16.7	%			2,686				97.0	%			18.4	%			5.1	%			0.3	%			7.5	%			4.8	%			0.3	%			0.5	%
San Francisco			11,188				15.9	%			3,308				96.3	%			21.1	%			1.7	%			0.0	%			2.4	%			1.1	%			0.6	%			0.8	%
New York			8,536				14.1	%			4,601				97.2	%			16.1	%			3.5	%			4.1	%			3.1	%			3.2	%			0.3	%			(1.5	%)
Boston			7,077				11.2	%			3,583				96.2	%			18.8	%			4.5	%			1.2	%			5.9	%			4.3	%			0.2	%			(0.8	%)
Seattle			9,266				10.4	%			2,587				96.2	%			22.2	%			1.0	%			4.9	%			(0.6	%)			(0.1	%)			1.1	%			(3.3	%)
Denver			2,505				2.6	%			2,421				96.5	%			24.4	%			1.1	%			(0.2	%)			1.7	%			1.1	%			0.2	%			(3.8	%)
Other Expansion Markets			3,197				2.1	%			1,972				95.3	%			29.5	%			0.1	%			0.3	%			0.0	%			(0.5	%)			0.4	%			2.6	%
Total			77,054				100.0	%		$	3,093				96.3	%			20.2	%			3.4	%			1.9	%			4.2	%			3.0	%			0.4	%			(0.5	%)

 

Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.2% of total revenues for the six months ended June 30, 2024.

 

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Equity Residential

 

Same Store Residential Net Effective Lease Pricing Statistics

For 77,054 Same Store Apartment Units

 

		New Lease Change (1)								Renewal Rate Achieved (1)								Blended Rate (1)
Markets/Metro Areas		Q2 2024				Q1 2024				Q2 2024				Q1 2024				Q2 2024				Q1 2024
Southern California			(2.4	%)			(3.6	%)			4.5	%			4.4	%			1.5	%			0.5	%
Washington, D.C.			4.9	%			1.6	%			6.7	%			5.7	%			5.9	%			4.0	%
San Francisco			0.4	%			(1.1	%)			5.1	%			4.1	%			2.9	%			1.7	%
New York			3.5	%			(1.1	%)			4.4	%			4.1	%			4.0	%			2.2	%
Boston			0.3	%			(3.4	%)			5.0	%			5.2	%			3.0	%			1.0	%
Seattle			0.5	%			(1.2	%)			5.3	%			6.1	%			3.3	%			2.8	%
Subtotal – Established Markets			0.9	%			(1.8	%)			5.1	%			4.8	%			3.3	%			1.8	%
Denver			(4.6	%)			(6.3	%)			3.9	%			4.3	%			(0.4	%)			(2.0	%)
Other Expansion Markets			(12.5	%)			(8.8	%)			2.7	%			4.1	%			(6.2	%)			(3.8	%)
Subtotal – Expansion Markets			(9.0	%)			(7.7	%)			3.3	%			4.2	%			(3.5	%)			(2.9	%)
Total			0.2	%			(2.2	%)			5.0	%			4.7	%			2.9	%			1.6	%

 

 

 

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Equity Residential

 

Second Quarter 2024 vs. Second Quarter 2023

Total Same Store Operating Expenses Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

		Q2 2024				Q2 2023				$ Change				% Change				% of Q2 2024 Operating Expenses
Real estate taxes		$	93,565			$	90,629			$	2,936				3.2	%			41.7	%
On-site payroll			42,531				42,507				24				0.1	%			18.9	%
Utilities			32,340				31,537				803				2.5	%			14.4	%
Repairs and maintenance			31,556				31,194				362				1.2	%			14.1	%
Insurance			9,307				8,427				880				10.4	%			4.1	%
Leasing and advertising			2,691				2,535				156				6.2	%			1.2	%
Other on-site operating expenses			12,535				11,852				683				5.8	%			5.6	%
Total Same Store Operating Expenses (2)		$	224,525			$	218,681			$	5,844				2.7	%			100.0	%

 

 

June YTD 2024 vs. June YTD 2023

Total Same Store Operating Expenses Including 77,054 Same Store Apartment Units

(includes Residential and Non-Residential)

($ in thousands)

 

		YTD 2024				YTD 2023				$ Change (1)				% Change				% of  YTD 2024 Operating Expenses
Real estate taxes		$	187,555			$	181,258			$	6,297				3.5	%			41.2	%
On-site payroll			85,454				85,116				338				0.4	%			18.8	%
Utilities			69,366				70,530				(1,164	)			(1.7	%)			15.2	%
Repairs and maintenance			61,242				61,555				(313	)			(0.5	%)			13.4	%
Insurance			18,614				16,853				1,761				10.4	%			4.1	%
Leasing and advertising			5,052				5,111				(59	)			(1.2	%)			1.1	%
Other on-site operating expenses			28,154				26,298				1,856				7.1	%			6.2	%
Total Same Store Operating Expenses (2)		$	455,437			$	446,721			$	8,716				2.0	%			100.0	%

 

 

 

Real estate taxes – Increase due to escalation in rates and assessed values including an approximately one percentage point contribution to growth from 421-a tax abatement burnoffs in New York City. Once the burnoffs are completed, previously rent-restricted apartment units will transition to market.

 

On-site payroll – Modest increase due primarily to higher wages partially offset by the impact of various innovation initiatives.

 

Utilities – Decrease primarily driven by lower commodity prices for gas and electric.

 

Repairs and maintenance – Decrease primarily driven by lower resident Turnover compared to the same period of 2023 and a benefit from a relatively easy comparable period.

 

Insurance – Increase due to higher premiums on property insurance renewal due to conditions in the insurance market that while less difficult than recent years, remain challenging.

 

Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses.

 

 

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Equity Residential

 

Debt Summary as of June 30, 2024

($ in thousands)

 

		Debt Balances (1)				% of Total				Weighted Average Rates (1)				Weighted Average Maturities (years)
Secured		$	1,634,838				22.8	%			3.86	%			7.4
Unsecured			5,522,345				77.2	%			3.63	%			8.0
Total		$	7,157,183				100.0	%			3.69	%			7.9
Fixed Rate Debt:
Secured – Conventional		$	1,399,844				19.5	%			3.89	%			6.9
Unsecured – Public			5,351,461				74.8	%			3.52	%			8.3
Fixed Rate Debt			6,751,305				94.3	%			3.60	%			8.0
Floating Rate Debt:
Secured – Tax Exempt			234,994				3.3	%			3.69	%			10.1
Unsecured – Revolving Credit Facility			—				—				—				3.3
Unsecured – Commercial Paper Program (2)			170,884				2.4	%			5.59	%			—
Floating Rate Debt			405,878				5.7	%			4.75	%			6.0
Total		$	7,157,183				100.0	%			3.69	%			7.9

Note: The Company capitalized interest of approximately $6.9 million and $7.0 million during the six months ended June 30, 2024 and 2023, respectively. The Company capitalized interest of approximately $3.8 million and $3.6 million during the quarters ended June 30, 2024 and 2023, respectively.

 

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Equity Residential

 

Debt Maturity Schedule as of June 30, 2024

($ in thousands)

 

Year		Fixed Rate				Floating Rate				Total				% of Total				Weighted Average Coupons on Fixed Rate Debt (1)				Weighted Average Coupons on Total Debt (1)
2024		$	—			$	177,200		(2)	$	177,200				2.5	%			—				5.48	%
2025			450,000				8,100				458,100				6.3	%			3.38	%			3.39	%
2026			592,025				9,000				601,025				8.3	%			3.58	%			3.59	%
2027			400,000				9,800				409,800				5.7	%			3.25	%			3.27	%
2028			900,000				10,700				910,700				12.6	%			3.79	%			3.79	%
2029			888,120				11,500				899,620				12.4	%			3.30	%			3.31	%
2030			1,148,462				12,700				1,161,162				16.1	%			2.53	%			2.55	%
2031			528,500				39,800				568,300				7.9	%			1.94	%			2.08	%
2032			—				28,000				28,000				0.4	%			—				4.20	%
2033			550,000				2,300				552,300				7.6	%			5.22	%			5.22	%
2034+			1,350,850				108,600				1,459,450				20.2	%			4.39	%			4.30	%
Subtotal			6,807,957				417,700				7,225,657				100.0	%			3.53	%			3.58	%
Deferred Financing Costs and Unamortized (Discount)			(56,652	)			(11,822	)			(68,474	)		N/A				N/A				N/A
Total		$	6,751,305			$	405,878			$	7,157,183				100.0	%			3.53	%			3.58	%

 

 

 

 

 

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Equity Residential

 

Selected Unsecured Public Debt Covenants

 

		June 30,		March 31,
		2024		2024
Debt to Adjusted Total Assets (not to exceed 60%)		25.6%		25.8%
Secured Debt to Adjusted Total Assets (not to exceed 40%)		6.7%		6.7%
Consolidated Income Available for Debt Service to    Maximum Annual Service Charges    (must be at least 1.5 to 1)		6.68		6.41
Total Unencumbered Assets to Unsecured Debt    (must be at least 125%)		534.8%		528.1%

 

Note: These selected covenants represent the most restrictive financial covenants relating to ERP Operating Limited Partnership's ("ERPOP") outstanding public debt securities. Equity Residential is the general partner of ERPOP.

 

 

Selected Credit Ratios

 

		June 30,		March 31,
		2024		2024
Total debt to Normalized EBITDAre		3.96x		4.01x
Net debt to Normalized EBITDAre		3.92x		3.97x
Unencumbered NOI as a % of total NOI		89.6%		89.6%

 

Note: See Normalized EBITDAre Reconciliations for detail.

 

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Equity Residential

 

Capital Structure as of June 30, 2024

(Amounts in thousands except for share/unit and per share amounts)

 

Secured Debt										$	1,634,838				22.8	%
Unsecured Debt											5,522,345				77.2	%
Total Debt											7,157,183				100.0	%			20.9	%
Common Shares (includes Restricted Shares)			379,086,882				97.0	%
Units (includes OP Units and Restricted Units)			11,663,842				3.0	%
Total Shares and Units			390,750,724				100.0	%
Common Share Price at June 30, 2024		$	69.34
											27,094,655				99.9	%
Perpetual Preferred Equity (see below)											17,155				0.1	%
Total Equity											27,111,810				100.0	%			79.1	%
Total Market Capitalization										$	34,268,993								100.0	%

 

 

 

Perpetual Preferred Equity as of June 30, 2024

(Amounts in thousands except for share and per share amounts)

 

Series		Call Date		Outstanding Shares				Liquidation Value				Annual Dividend Per Share				Annual Dividend Amount
Preferred Shares:
8.29% Series K		12/10/26			343,100			$	17,155			$	4.145			$	1,422

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Equity Residential Common Share and Unit Weighted Average Amounts Outstanding

 

		June YTD 2024				June YTD 2023				Q2 2024				Q2 2023
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic			378,699,050				378,492,171				378,578,395				378,641,804
Shares issuable from assumed conversion/vesting of:
- OP Units			10,680,864				11,449,790				10,692,382				11,390,569
- long-term compensation shares/units			1,167,742				1,121,169				1,271,160				1,155,127
Total Common Shares and Units - diluted			390,547,656				391,063,130				390,541,937				391,187,500
Weighted Average Amounts Outstanding for FFO and Normalized FFO Purposes:
Common Shares - basic			378,699,050				378,492,171				378,578,395				378,641,804
OP Units - basic			10,680,864				11,449,790				10,692,382				11,390,569
Total Common Shares and OP Units - basic			389,379,914				389,941,961				389,270,777				390,032,373
Shares issuable from assumed conversion/vesting of:
- long-term compensation shares/units			1,167,742				1,121,169				1,271,160				1,155,127
Total Common Shares and Units - diluted			390,547,656				391,063,130				390,541,937				391,187,500
Period Ending Amounts Outstanding:
Common Shares (includes Restricted Shares)			379,086,882				379,032,722
Units (includes OP Units and Restricted Units)			11,663,842				12,415,452
Total Shares and Units			390,750,724				391,448,174

 

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Equity Residential Development and Lease-Up Projects as of June 30, 2024 (Amounts in thousands except for project and apartment unit amounts)

 

																								Estimated/Actual
Projects		Location		Ownership Percentage		No. of Apartment Units				Total Budgeted Capital Cost				Total Book Value to Date				Total Debt (1)				Percentage Completed		Start Date		Initial Occupancy		Completion Date		Stabilization Date		Percentage Leased / Occupied
CONSOLIDATED:
Projects Under Development:
Laguna Clara II		Santa Clara, CA		100%			225			$	152,621			$	107,556			$	—			75%		Q2 2022		Q4 2024		Q1 2025		Q4 2025		– / –
The Basin		Wakefield, MA		95%			440				232,172				80,727				—			18%		Q1 2024		Q4 2025		Q3 2026		Q2 2027		– / –
Projects Under Development - Consolidated							665				384,793				188,283				—
Projects Completed and Stabilized During the Quarter:
Reverb (fka 9th and W) (2)		Washington, D.C.		92%			312				106,027				104,833				—			100%		Q3 2021		Q2 2023		Q2 2023		Q2 2024		97% / 93%
Projects Completed and Stabilized During the Quarter - Consolidated							312				106,027				104,833				—
UNCONSOLIDATED:
Projects Under Development:
Alexan Harrison		Harrison, NY		62%			450				200,664				191,592				97,980			97%		Q3 2021		Q1 2024		Q4 2024		Q2 2026		40% / 33%
Solana Beeler Park		Denver, CO		90%			270				85,206				72,278				37,309			86%		Q4 2021		Q4 2024		Q2 2025		Q4 2025		3% / –
Remy (Toll)		Frisco, TX		75%			357				98,937				90,047				45,967			94%		Q1 2022		Q2 2024		Q4 2024		Q3 2025		35% / 27%
Sadie (fka Settler) (Toll)		Fort Worth, TX		75%			362				82,775				69,981				29,617			91%		Q2 2022		Q2 2024		Q4 2024		Q3 2025		26% / 12%
Lyle (Toll) (2)		Dallas, TX		75%			334				86,332				73,862				38,666			92%		Q3 2022		Q1 2024		Q4 2024		Q1 2026		38% / 23%
Projects Under Development - Unconsolidated							1,773				553,914				497,760				249,539
Projects Completed Not Stabilized:
Alloy Sunnyside		Denver, CO		80%			209				70,004				68,602				32,104			99%		Q3 2021		Q2 2024		Q2 2024		Q3 2025		7% / 2%
Projects Completed Not Stabilized - Unconsolidated							209				70,004				68,602				32,104
Total Development Projects - Consolidated							977				490,820				293,116				—
Total Development Projects - Unconsolidated							1,982				623,918				566,362				281,643
Total Development Projects							2,959			$	1,114,738			$	859,478			$	281,643

 

NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS	Total Budgeted Capital Cost				Q2 2024 NOI
Projects Under Development - Consolidated	$	384,793			$	—
Projects Completed and Stabilized During the Quarter - Consolidated		106,027				1,331
Projects Under Development - Unconsolidated		553,914				293
Projects Completed Not Stabilized - Unconsolidated		70,004				(71	)
	$	1,114,738			$	1,553

 

 

 

 

 

 

 

 

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Equity Residential Capital Expenditures to Real Estate For the Six Months Ended June 30, 2024 (Amounts in thousands except for apartment unit and per apartment unit amounts)

 

		Same Store Properties				Non-Same Store Properties/Other				Total Consolidated Properties				Same Store Avg. Per Apartment Unit
Total Consolidated Apartment Units			77,054				2,475				79,529
Building Improvements		$	62,969			$	5,446		(2)	$	68,415			$	817
Renovation Expenditures			47,374		(1)		8,022		(2)		55,396				615
Replacements			29,344				149				29,493				381
Capital Expenditures to Real Estate (3)			139,687				13,617				153,304				1,813
Less: NOI-Enhancing Expenditures (3)			(61,815	)	(4)		(8,033	)			(69,848	)			(802	)
Recurring Capital Expenditures to Real Estate (3)		$	77,872			$	5,584			$	83,456			$	1,011

 

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Equity Residential

Normalized EBITDAre Reconciliations

(Amounts in thousands)

 

		Trailing Twelve Months								2024								2023
		June 30, 2024				March 31, 2024				Q2				Q1				Q4				Q3				Q2
Net income		$	992,142			$	953,449			$	183,555			$	305,032			$	322,269			$	181,286			$	144,862
Interest expense incurred, net			270,605				270,367				65,828				67,212				68,674				68,891				65,590
Amortization of deferred financing costs			8,781				8,880				1,918				1,918				1,918				3,027				2,017
Amortization of above/below market lease intangibles			4,464				4,464				1,116				1,116				1,116				1,116				1,116
Depreciation			901,617				898,574				224,398				225,695				226,788				224,736				221,355
Income and other tax expense (benefit)			1,149				1,154				331				304				256				258				336
EBITDA			2,178,758				2,136,888				477,146				601,277				621,021				479,314				435,276
Net (gain) loss on sales of real estate properties			(410,411	)			(370,515	)			(39,809	)			(188,185	)			(155,505	)			(26,912	)			87
EBITDAre			1,768,347				1,766,373				437,337				413,092				465,516				452,402				435,363
Write-off of pursuit costs (other expenses)			3,023				2,863				821				548				908				746				661
(Income) loss from investments in unconsolidated entities - operations			6,145				5,694				1,674				1,698				1,531				1,242				1,223
Realized (gain) loss on investment securities (interest and other income)			(275	)			(1,591	)			1,316				—				7				(1,598	)			—
Unrealized (gain) loss on investment securities (interest and other income)			(19,211	)			(20,527	)			1,316				(7,061	)			(9,005	)			(4,461	)			—
Insurance/litigation settlement or reserve income (interest and other income)			(1,621	)			(360	)			(1,454	)			(105	)			—				(62	)			(193	)
Insurance/litigation/environmental settlement or reserve expense (other expenses)			48,667				42,789				9,391				30,478				5,694				3,104				3,513
Advocacy contributions (other expenses)			4,514				2,276				2,558				141				1,665				150				320
Data transformation project (other expenses)			295				1,700				—				—				—				295				1,405
Other			(936	)			(518	)			(412	)			77				(602	)			1				6
Normalized EBITDAre		$	1,808,948			$	1,798,699			$	452,547			$	438,868			$	465,714			$	451,819			$	442,298
Balance Sheet Items:		June 30, 2024				March 31, 2024
Total debt		$	7,157,183			$	7,209,729
Cash and cash equivalents			(38,298	)			(44,535	)
Mortgage principal reserves/sinking funds			(33,266	)			(31,203	)
Net debt		$	7,085,619			$	7,133,991

Note: EBITDA, EBITDAre and Normalized EBITDAre do not include any adjustments for the Company’s share of partially owned unconsolidated entities or the minority partner’s share of partially owned consolidated entities due to the immaterial size of the Company’s partially owned portfolio.

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Equity Residential

Adjustments from FFO to Normalized FFO

(Amounts in thousands)

 

		Six Months Ended June 30,												Quarter Ended June 30,
		2024				2023				Variance				2024				2023				Variance
Impairment – non-operating real estate assets		$	—			$	—			$	—			$	—			$	—			$	—
Write-off of pursuit costs (other expenses)			1,369				1,993				(624	)			821				661				160
Write-off of unamortized deferred financing costs (interest expense)			—				47				(47	)			—				47				(47	)
Premium on redemption of Preferred Shares			1,444				—				1,444				—				—				—
Debt extinguishment and preferred share redemption (gains) losses			1,444				47				1,397				—				47				(47	)
(Income) loss from investments in unconsolidated entities ─ non-operating assets			1,213				944				269				258				317				(59	)
Realized (gain) loss on investment securities (interest and other income)			1,316				87				1,229				1,316				—				1,316
Unrealized (gain) loss on investment securities (interest and other income)			(5,745	)			—				(5,745	)			1,316				—				1,316
Non-operating asset (gains) losses			(3,216	)			1,031				(4,247	)			2,890				317				2,573
Insurance/litigation settlement or reserve income (interest and other income)			(1,559	)			(993	)			(566	)			(1,454	)			(193	)			(1,261	)
Insurance/litigation/environmental settlement or reserve expense (other expenses) (1)			39,869				8,512				31,357				9,391				3,513				5,878
Advocacy contributions (other expenses)			2,699				327				2,372				2,558				320				2,238
Data transformation project (other expenses)			—				3,485				(3,485	)			—				1,405				(1,405	)
Other			(335	)			12				(347	)			(412	)			6				(418	)
Other miscellaneous items			40,674				11,343				29,331				10,083				5,051				5,032
Adjustments from FFO to Normalized FFO		$	40,271			$	14,414			$	25,857			$	13,794			$	6,076			$	7,718

 

Note: See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

 

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Equity Residential Normalized FFO Guidance and Assumptions

 

The guidance/projections provided below are based on current expectations and are forward-looking. All guidance is given on a Normalized FFO basis. Therefore, certain items excluded from Normalized FFO, such as debt extinguishment costs/prepayment penalties and the write-off of pursuit costs, are not included in the estimates provided on this page. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for the definitions of non-GAAP financial measures and other terms as well as the reconciliations of EPS to FFO per share and Normalized FFO per share.

 

		Q3 2024		Revised Full Year 2024		Previous Full Year 2024
2024 Normalized FFO Guidance (per share diluted)
Expected Normalized FFO Per Share		$0.96 to $1.00		$3.86 to $3.92		$3.80 to $3.90
2024 Same Store Assumptions (includes Residential and Non-Residential)
Physical Occupancy				96.2%		95.9%
Revenue change				2.9% to 3.5%		2.0% to 3.0%
Expense change				2.5% to 3.5%		3.5% to 4.5%
NOI change (1)				3.0% to 3.5%		1.0% to 2.6%
2024 Transaction Assumptions
Consolidated rental acquisitions				$1.0B		$1.0B
Consolidated rental dispositions				$1.0B		$1.0B
Transaction Accretion (Dilution)				(25 basis points)		(25 basis points)
2024 Debt Assumptions
Weighted average debt outstanding				$7.30B to $7.50B		$7.27B to $7.47B
Interest expense, net (on a Normalized FFO basis)				$267.3M to $273.3M		$268.0M to $274.0M
Capitalized interest				$12.5M to $15.5M		$9.7M to $13.7M
2024 Capital Expenditures to Real Estate Assumptions for Same Store Properties (2)
Capital Expenditures to Real Estate for Same Store Properties				$295.0M		$295.0M
Capital Expenditures to Real Estate per Same Store Apartment Unit				$3,800		$3,800
2024 Other Guidance Assumptions
Property management expense				$128.5M to $131.5M		$124.0M to $126.0M
General and administrative expense				$59.5M to $63.5M		$57.5M to $61.5M
Debt offerings				No amounts budgeted		No amounts budgeted
Weighted average Common Shares and Units - Diluted				390.7M		391.1M

 

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Equity Residential Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms (Amounts in thousands except per share and per apartment unit data) (All per share data is diluted)

 

This Earnings Release and Supplemental Financial Information includes certain non-GAAP financial measures and other terms that management believes are helpful in understanding our business. The definitions and calculations of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other real estate investment trusts (“REIT”) and, accordingly, may not be comparable. These non-GAAP financial measures should not be considered as an alternative to net earnings or any other measurement of performance computed in accordance with accounting principles generally accepted in the United States (“GAAP”) or as an alternative to cash flows from specific operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

 

Acquisition Capitalization Rate or Cap Rate – NOI that the Company anticipates receiving in the next 12 months (or the year two or three stabilized NOI for properties that are in lease-up at acquisition) less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $100-$450 per apartment unit depending on the age and condition of the asset) divided by the gross purchase price of the asset. The weighted average Acquisition Cap Rate for acquired properties is weighted based on the projected NOI streams and the relative purchase price for each respective property.

 

Average Rental Rate – Total Residential rental revenues reflected on a straight-line basis in accordance with GAAP divided by the weighted average occupied apartment units for the reporting period presented.

 

Bad Debt, Net – Change in rental income due to bad debt write-offs and reserves, net of amounts collected on previously written-off or reserved accounts.

 

Blended Rate – The weighted average of New Lease Change and Renewal Rate Achieved.

 

Capital Expenditures to Real Estate:

Building Improvements – Includes roof replacement, paving, building mechanical equipment systems, exterior siding and painting, major landscaping, furniture, fixtures and equipment for amenities and common areas, vehicles and office and maintenance equipment.

 

NOI-Enhancing – Primarily includes Renovation Expenditures as well as sustainability and property-level technology expenditures that are intended to increase revenues or decrease expenses.

 

Recurring – Capital expenditures necessary to help preserve the value of and maintain the functionality at our apartment properties.

 

Renovation Expenditures – Apartment unit renovation costs (primarily kitchens and baths) designed to reposition these units for higher rental levels in their respective markets.

 

Replacements – Includes appliances, mechanical equipment, fixtures and flooring (including hardwood and carpeting).

 

Debt Balances:

Commercial Paper Program – The Company may borrow up to a maximum of $1.0 billion under its Commercial Paper Program subject to market conditions. The notes bear interest at various floating rates.

 

Revolving Credit Facility – The Company’s $2.5 billion unsecured revolving credit facility matures October 26, 2027. The interest rate on advances under the facility will generally be SOFR plus a spread (currently 0.715%), or based on bids received from the lending group, and an annual facility fee (currently 0.125%). Both the spread and the facility fee are dependent on the Company’s senior unsecured credit rating. In addition, the Company limits its utilization of the facility in order to maintain liquidity to support its $1.0 billion Commercial Paper Program along with certain other obligations. The following table presents the availability on the Company’s unsecured revolving credit facility:

 

		June 30, 2024
Unsecured revolving credit facility commitment		$	2,500,000
Commercial paper balance outstanding			(171,000	)
Unsecured revolving credit facility balance outstanding			—
Other restricted amounts			(3,438	)
Unsecured revolving credit facility availability		$	2,325,562

 

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Debt Covenant Compliance – Our unsecured debt includes certain financial and operating covenants including, among other things, maintenance of certain financial ratios. These provisions are contained in the indentures applicable to each notes payable or the credit agreement for our line of credit. The Debt Covenant Compliance ratios that are provided show the Company's compliance with certain covenants governing our public unsecured debt. These covenants generally reflect our most restrictive financial covenants. The Company was in compliance with its unsecured debt covenants for all periods presented.

 

Development Yield – NOI that the Company anticipates receiving in the next 12 months following stabilization less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $50-$150 per apartment unit depending on the type of asset) divided by the Total Budgeted Capital Cost of the asset. The weighted average Development Yield for development properties is weighted based on the projected NOI streams and the relative Total Budgeted Capital Cost for each respective property.

 

Disposition Yield – NOI that the Company anticipates giving up in the next 12 months less an estimate of property management costs/management fees allocated to the project (generally ranging from 2.0% to 4.0% of revenues depending on the size and income streams of the asset) and less an estimate for in-the-unit replacement capital expenditures (generally ranging from $150-$450 per apartment unit depending on the age and condition of the asset) divided by the gross sales price of the asset. The weighted average Disposition Yield for sold properties is weighted based on the projected NOI streams and the relative sales price for each respective property.

 

Earnings Per Share ("EPS") – Net income per share calculated in accordance with GAAP. Expected EPS is calculated on a basis consistent with actual EPS. Due to the uncertain timing and extent of property dispositions and the resulting gains/losses on sales, actual EPS could differ materially from expected EPS.

 

EBITDA for Real Estate and Normalized EBITDA for Real Estate:

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) – The National Association of Real Estate Investment Trusts (“Nareit”) defines EBITDAre (September 2017 White Paper) as net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for gains and losses from sales of depreciated operating properties, impairment write-downs of depreciated operating properties, impairment write-downs of investments in unconsolidated entities caused by a decrease in value of depreciated operating properties within the joint venture and adjustments to reflect the Company’s share of EBITDAre of investments in unconsolidated entities.

 

The Company believes that EBITDAre is useful to investors, creditors and rating agencies as a supplemental measure of the Company’s ability to incur and service debt because it is a recognized measure of performance by the real estate industry, and by excluding gains or losses related to sales or impairment of depreciated operating properties, EBITDAre can help compare the Company’s credit strength between periods or as compared to different companies.

 

Normalized Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Normalized EBITDAre”) – Represents net income (computed in accordance with GAAP) before interest expense, income taxes, depreciation and amortization expense, and further adjusted for non-comparable items. Normalized EBITDAre, total debt to Normalized EBITDAre and net debt to Normalized EBITDAre are important metrics in evaluating the credit strength of the Company and its ability to service its debt obligations. The Company believes that Normalized EBITDAre, total debt to Normalized EBITDAre, and net debt to Normalized EBITDAre are useful to investors, creditors and rating agencies because they allow investors to compare the Company’s credit strength to prior reporting periods and to other companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company’s actual credit quality.

 

Economic Gain (Loss) – Economic Gain (Loss) is calculated as the net gain (loss) on sales of real estate properties in accordance with GAAP, excluding accumulated depreciation. The Company generally considers Economic Gain (Loss) to be an appropriate supplemental measure to net gain (loss) on sales of real estate properties in accordance with GAAP because it is one indication of the gross value created by the Company's acquisition, development, renovation, management and ultimate sale of a property and because it helps investors to understand the relationship between the cash proceeds from a sale and the cash invested in the sold property. The following table presents a reconciliation of net gain (loss) on sales of real estate properties in accordance with GAAP to Economic Gain (Loss):

 

		Six Months Ended June 30, 2024				Quarter Ended June 30, 2024
Net Gain (Loss) on Sales of Real Estate Properties		$	227,994			$	39,809
Accumulated Depreciation Gain			(96,675	)			(38,655	)
Economic Gain (Loss)		$	131,319			$	1,154

 

 

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Established Markets – Includes Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California (Los Angeles, Orange County and San Diego).

 

Expansion Markets – Includes Denver, Atlanta, Dallas/Ft. Worth and Austin.

 

FFO and Normalized FFO:

Funds From Operations (“FFO”) – Nareit defines FFO (December 2018 White Paper) as net income (computed in accordance with GAAP), excluding gains or losses from sales and impairment write-downs of depreciable real estate and land when connected to the main business of a REIT, impairment write-downs of investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and depreciation and amortization related to real estate. Adjustments for partially owned consolidated and unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Expected FFO per share is calculated on a basis consistent with actual FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that FFO and FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company, because they are recognized measures of performance by the real estate industry and by excluding gains or losses from sales and impairment write-downs of depreciable real estate and excluding depreciation related to real estate (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO available to Common Shares and Units can help compare the operating performance of a company’s real estate between periods or as compared to different companies.

 

Normalized Funds From Operations ("Normalized FFO" or "NFFO") – Normalized FFO begins with FFO and excludes:

Expected Normalized FFO per share is calculated on a basis consistent with actual Normalized FFO per share and is considered an appropriate supplemental measure of expected operating performance when compared to expected EPS.

The Company believes that Normalized FFO and Normalized FFO available to Common Shares and Units are helpful to investors as supplemental measures of the operating performance of a real estate company because they allow investors to compare the Company's operating performance to its performance in prior reporting periods and to the operating performance of other real estate companies without the effect of items that by their nature are not comparable from period to period and tend to obscure the Company's actual operating results.

FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units do not represent net income, net income available to Common Shares or net cash flows from operating activities in accordance with GAAP. Therefore, FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units should not be exclusively considered as alternatives to net income, net income available to Common Shares or net cash flows from operating activities as determined by GAAP or as a measure of liquidity. The Company's calculation of FFO, FFO available to Common Shares and Units, Normalized FFO and Normalized FFO available to Common Shares and Units may differ from other real estate companies due to, among other items, variations in cost capitalization policies for capital expenditures and, accordingly, may not be comparable to such other real estate companies.

FFO available to Common Shares and Units and Normalized FFO available to Common Shares and Units are calculated on a basis consistent with net income available to Common Shares and reflects adjustments to net income for preferred distributions and premiums on redemption of preferred shares in accordance with GAAP. The equity positions of various individuals and entities that contributed their properties to the Operating Partnership in exchange for OP Units are collectively referred to as the "Noncontrolling Interests – Operating Partnership". Subject to certain restrictions, the Noncontrolling Interests – Operating Partnership may exchange their OP Units for Common Shares on a one-for-one basis.

 

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The following table presents reconciliations of EPS to FFO per share and Normalized FFO per share for Consolidated Statements of Funds From Operations and Normalized Funds From Operations.

		Actual June				Actual June				Actual				Actual				Expected				Expected
		YTD 2024				YTD 2023				Q2 2024				Q2 2023				Q3 2024				2024
		Per Share				Per Share				Per Share				Per Share				Per Share				Per Share
EPS – Diluted		$	1.24			$	0.92			$	0.47			$	0.37			$0.49 to $0.53				$3.04 to $3.10
Depreciation expense			1.15				1.11				0.57				0.56				0.57				2.29
Net (gain) loss on sales			(0.59	)			(0.25	)			(0.10	)			—				(0.12	)			(1.61	)
Impairment – operating real estate assets			—				—				—				—				—				—
FFO per share – Diluted			1.80				1.78				0.94				0.93			0.94 to 0.98				3.72 to 3.78
Adjustments (1):
Impairment – non-operating real estate    assets			—				—				—				—				—				—
Write-off of pursuit costs			—				0.01				—				—				—				0.01
Debt extinguishment and preferred    share redemption (gains) losses			—				—				—				—				—				0.01
Non-operating asset (gains) losses			—				—				—				—				—				(0.01	)
Other miscellaneous items			0.11				0.03				0.03				0.01				0.02				0.13
Normalized FFO per share – Diluted		$	1.91			$	1.82			$	0.97			$	0.94			$0.96 to $1.00				$3.86 to $3.92

 

 

 

 

Lease-Up NOI – Represents NOI for development properties: (i) in various stages of lease-up; and (ii) where lease-up has been completed but the properties were not stabilized (defined as having achieved 90% occupancy for three consecutive months) for all of the current and comparable periods presented.

 

Leasing Concessions – Reflects upfront discounts on both new move-in and renewal leases on a straight-line basis.

 

Net Operating Income (“NOI”) – NOI is the Company’s primary financial measure for evaluating each of its apartment properties. NOI is defined as rental income less direct property operating expenses (including real estate taxes and insurance). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company's apartment properties. NOI does not include an allocation of property management expenses either in the current or comparable periods. Rental income for all leases and operating expense for ground leases (for both same store and non-same store properties) are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

 

The following tables present reconciliations of net income per the consolidated statements of operations to NOI, along with rental income, operating expenses and NOI per the consolidated statements of operations allocated between same store and non-same store/other results and further allocated between Residential same store and Non-Residential same store results (see Same Store Results):

 

		Six Months Ended June 30,								Quarter Ended June 30,
		2024				2023				2024				2023
Net income		$	488,587			$	364,933			$	183,555			$	144,862
Adjustments:
Property management			68,969				62,145				33,511				30,679
General and administrative			34,351				35,041				18,631				18,876
Depreciation			450,093				437,185				224,398				221,355
Net (gain) loss on sales of real estate    properties			(227,994	)			(100,122	)			(39,809	)			87
Interest and other income			(10,657	)			(3,669	)			(1,328	)			(2,131	)
Other expenses			45,123				15,559				13,385				6,564
Interest:
Expense incurred, net			133,040				131,991				65,828				65,590
Amortization of deferred financing costs			3,836				3,996				1,918				2,017
Income and other tax expense (benefit)			635				634				331				336
(Income) loss from investments in unconsolidated    entities			3,372				2,605				1,674				1,223
Total NOI		$	989,355			$	950,298			$	502,094			$	489,458

 

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		Six Months Ended June 30,								Quarter Ended June 30,
Rental income:		2024				2023				2024				2023
Residential same store		$	1,376,668			$	1,330,997			$	691,798			$	671,601
Non-Residential same store			55,897				52,860				26,371				26,183
Total same store			1,432,565				1,383,857				718,169				697,784
Non-same store/other			32,416				38,540				15,994				19,525
Total rental income			1,464,981				1,422,397				734,163				717,309
Operating expenses:
Residential same store			440,432				432,363				217,006				211,436
Non-Residential same store			15,005				14,358				7,519				7,245
Total same store			455,437				446,721				224,525				218,681
Non-same store/other			20,189				25,378				7,544				9,170
Total operating expenses			475,626				472,099				232,069				227,851
NOI:
Residential same store			936,236				898,634				474,792				460,165
Non-Residential same store			40,892				38,502				18,852				18,938
Total same store			977,128				937,136				493,644				479,103
Non-same store/other			12,227				13,162				8,450				10,355
Total NOI		$	989,355			$	950,298			$	502,094			$	489,458

 

New Lease Change – The net effective change in rent (inclusive of Leasing Concessions) for a lease with a new or transferring resident compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

 

Non-Residential – Consists of revenues and expenses from retail and public parking garage operations.

 

Non-Same Store Properties – For annual comparisons, primarily includes all properties acquired during 2023 and 2024, plus any properties in lease-up and not stabilized as of January 1, 2023. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.

 

Percentage of Residents Renewing – Leases renewed expressed as a percentage of total renewal offers extended during the reporting period.

 

Physical Occupancy – The weighted average occupied apartment units for the reporting period divided by the average of total apartment units available for rent for the reporting period.

 

Pricing Trend – Weighted average of 12-month base rent including amenity amount less Leasing Concessions on 12-month signed leases for the reporting period.

 

Renewal Rate Achieved – The net effective change in rent (inclusive of Leasing Concessions) for a new lease on an apartment unit where the lease has been renewed as compared to the rent for the prior lease of the identical apartment unit, regardless of lease term.

 

Residential – Consists of multifamily apartment revenues and expenses.

 

Same Store Operating Expenses:

Insurance – Includes third-party insurance premiums, broker fees and other insurance-related procurement fees along with an allocation of estimated uninsured losses.

 

On-site Payroll – Includes payroll and related expenses for on-site personnel including property managers, leasing consultants and maintenance staff.

 

Other On-site Operating Expenses – Includes ground lease costs and administrative costs such as office supplies, telephone and data charges and association and business licensing fees.

 

Repairs and Maintenance – Includes general maintenance costs, apartment unit turnover costs including interior painting, routine landscaping, security, exterminating, fire protection, snow removal, elevator, roof and parking lot repairs and other miscellaneous building repair and maintenance costs.

 

Utilities – Represents gross expenses prior to any recoveries under the Resident Utility Billing System (“RUBS”). Recoveries are reflected in rental income.

 

 

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Same Store Properties – For annual comparisons, primarily includes all properties acquired or completed that are stabilized prior to January 1, 2023, less properties subsequently sold. Properties are included in Same Store when they are stabilized for all of the current and comparable periods presented. Unless otherwise noted, includes both Residential and Non-Residential operations for these properties.

 

Same Store Residential Revenues – Revenues from our Residential Same Store Properties only presented on a GAAP basis which reflects the impact of Leasing Concessions on a straight-line basis.

 

Same Store Residential Revenues with Leasing Concessions on a cash basis is presented in Same Store Results and is considered by the Company to be a supplemental measure to Same Store Residential Revenues in conformity with GAAP to help investors evaluate the impact of both current and historical Leasing Concessions on GAAP-based Same Store Residential Revenues and to more readily enable comparisons to revenue as reported by other companies. Same Store Residential Revenues with Leasing Concessions on a cash basis reflects the impact of Leasing Concessions used in the period and allows an investor to understand the historical trend in cash Leasing Concessions.

 

% of Stabilized Budgeted NOI – Represents original budgeted 2024 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.

 

Total Budgeted Capital Cost – Estimated remaining cost for projects under development and/or developed plus all capitalized costs incurred to date, including land acquisition costs, construction costs, capitalized real estate taxes and insurance, capitalized interest and loan fees, permits, professional fees, allocated development overhead and other regulatory fees, plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP. Amounts for partially owned consolidated and unconsolidated properties are presented at 100% of the project.

 

Total Market Capitalization – The aggregate of the market value of the Company’s outstanding common shares, including restricted shares, the market value of the Company’s operating partnership units outstanding, including restricted units (based on the market value of the Company’s common shares) and the outstanding principal balance of debt. The Company believes this is a useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common shares trade. However, because this measure of leverage changes with fluctuations in the Company’s share price, which occur regularly, this measure may change even when the Company’s earnings, interest and debt levels remain stable.

 

Traffic – Consists of an expression of interest in an apartment by completing an in-person tour, self-guided tour or virtual tour that may result in an application to lease.

 

Transaction Accretion (Dilution) – Represents the spread between the Acquisition Cap Rate and the Disposition Yield.

 

Turnover – Total Residential move-outs (including inter-property and intra-property transfers) divided by total Residential apartment units.

 

Unencumbered NOI % – Represents NOI generated by consolidated real estate assets unencumbered by outstanding secured debt as a percentage of total NOI generated by all of the Company's consolidated real estate assets.

 

Weighted Average Coupons – Contractual interest rate for each debt instrument weighted by principal balances as of June 30, 2024. In case of debt for which fair value hedges are in place, the rate payable under the corresponding derivatives is used in lieu of the contractual interest rate.

 

Weighted Average Rates – Interest expense for each debt instrument for the six months ended June 30, 2024 weighted by its average principal balance for the same period. Interest expense includes amortization of premiums, discounts and other comprehensive income on debt and related derivative instruments. In case of debt for which derivatives are in place, the income or expense recognized under the corresponding derivatives is included in the total interest expense for the period.

 

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v3.24.2

Cover Page	Jul. 29, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 29, 2024
Entity Registrant Name	EQUITY RESIDENTIAL
Entity Central Index Key	0000906107
Entity File Number	1-12252
Entity Tax Identification Number	13-3675988
Entity Address, Address Line One	Two North Riverside Plaza
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60606
City Area Code	312
Local Phone Number	474-1300
Entity Incorporation, State or Country Code	MD
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Shares of Beneficial Interest, $0.01 Par Value
Trading Symbol	EQR
Security Exchange Name	NYSE

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