Financial News
Equity Residential Reports Third Quarter 2023 Results
Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2023 and has posted a Q3 2023 Management Presentation to its website as referenced below.
Third Quarter 2023 Results
All per share results are reported as available to common shares/units on a diluted basis.
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Quarter Ended September 30, |
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2023 |
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2022 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.45 |
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$ |
0.86 |
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$ |
(0.41 |
) |
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(47.7 |
%) |
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Funds from Operations (FFO) per share |
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$ |
0.96 |
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$ |
0.90 |
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$ |
0.06 |
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6.7 |
% |
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Normalized FFO (NFFO) per share |
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$ |
0.96 |
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$ |
0.92 |
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$ |
0.04 |
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4.3 |
% |
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Nine Months Ended September 30, |
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2023 |
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2022 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
1.38 |
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$ |
1.63 |
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$ |
(0.25 |
) |
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(15.3 |
%) |
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Funds from Operations (FFO) per share |
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$ |
2.74 |
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$ |
2.56 |
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$ |
0.18 |
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7.0 |
% |
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Normalized FFO (NFFO) per share |
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$ |
2.78 |
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$ |
2.58 |
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$ |
0.20 |
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7.8 |
% |
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Recent Highlights
- Same store revenue increased 4.1% for the third quarter of 2023 compared to the third quarter of 2022 and was negatively impacted by weaker than expected revenue performance in San Francisco and Seattle as well as the non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid. The Company revised its 2023 annual same store revenue growth guidance to 5.5% as further described in this release and in the Management Presentation referenced below.
- Bad debt before the application of governmental rental assistance has improved substantially for the nine months ended September 2023 as compared to the same period in 2022, albeit slightly less than our prior expectations due to the timing associated with current eviction proceedings. See page 13 for additional details.
- Same store expense growth for the third quarter of 2023 compared to the third quarter of 2022 was 3.1%. The Company also reaffirmed its full year 2023 same store expense growth at 4.25%.
- During the third quarter of 2023, the Company acquired two suburban Atlanta apartment properties, consisting of 634 apartment units, for an aggregate acquisition price of approximately $179.7 million and sold a 166-unit apartment property in Seattle for approximately $60.1 million. Subsequent to the end of the quarter, the Company sold three operating properties for a total of approximately $184.6 million.
- The Company recently published its tenth annual Environmental, Social and Governance (ESG) report highlighting Equity Residential's goals and accomplishments.
“Our East Coast portfolio performed very well in the quarter. Strong demand combined with low supply in Boston and New York and rapid absorption of supply in Washington, D.C. position these markets favorably going forward. While the East Coast outperformed our expectations, the San Francisco and Seattle markets underperformed due to lower recent job growth in our target affluent renter demographic and, together with the Rite Aid bankruptcy, led us to adjust guidance,” said Mark J. Parrell, Equity Residential’s President and CEO. “We are pleased with our progress in reducing our COVID era delinquency but the legal process is lengthy and uneven and we will likely end the year with modestly more delinquency than our previous goal. As we think about 2024 operating performance, continued demand from our well-employed renter demographic and limited new supply in most of our markets should lead to another year of solid same store revenue growth.”
Full Year 2023 Guidance
The Company has revised its guidance for its full year 2023 same store operating performance, EPS, FFO per share and Normalized FFO per share as listed below:
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Revised |
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Previous |
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Change at Midpoint |
Same Store (includes Residential and Non-Residential): |
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Physical Occupancy |
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95.9% |
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96.0% |
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(0.1%) |
Revenue change |
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5.5% |
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5.5% to 6.25% |
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(0.375%) |
Expense change |
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4.25% |
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4.0% to 4.5% |
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0.00% |
Net Operating Income (NOI) change |
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6.2% |
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6.3% to 7.0% |
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(0.45%) |
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EPS |
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$2.20 to $2.22 |
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$1.95 to $2.01 |
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$0.23 |
FFO per share |
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$3.74 to $3.76 |
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$3.72 to $3.78 |
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$0.00 |
Normalized FFO per share |
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$3.77 to $3.79 |
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$3.77 to $3.83 |
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($0.02) |
The change in the full year 2023 EPS guidance range is due primarily to higher expected property sale gains, partially offset by lower expected Residential and Non-Residential same store NOI and higher expected depreciation expense.
The change in the full year 2023 Normalized FFO per share guidance range is due primarily to lower expected Residential and Non-Residential same store NOI.
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 29 through 34 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 31 and 32 of this release.
Results Per Share
The changes in EPS for the quarter and nine months ended September 30, 2023 compared to the same periods of 2022 are due primarily to lower property sale gains in the current periods, the various adjustment items listed on page 27 of this release and the items described below.
The per share changes in FFO for the quarter and nine months ended September 30, 2023 compared to the same periods of 2022 are due primarily to the various adjustment items listed on page 27 of this release and the items described below.
The per share changes in Normalized FFO are due primarily to:
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Positive/(Negative) Impact |
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Third Quarter 2023 vs.
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September YTD 2023 vs.
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Residential same store NOI |
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$ |
0.06 |
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$ |
0.22 |
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Non-Residential same store NOI (1) |
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(0.01 |
) |
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— |
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Lease-Up NOI |
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— |
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0.02 |
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2023 and 2022 transaction activity impact on NOI, net |
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— |
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(0.02 |
) |
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Interest expense, net |
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— |
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0.03 |
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Corporate overhead (2) |
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(0.01 |
) |
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(0.02 |
) |
Other items (3) |
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— |
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(0.03 |
) |
Net |
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$ |
0.04 |
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$ |
0.20 |
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| (1) | During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid. |
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| (2) | Corporate overhead includes property management and general and administrative expenses. |
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| (3) | Primarily represents the negative impact from property damage associated with the California rain storms that occurred earlier this year. |
Same Store Results
The following table shows the total same store results for the periods presented.
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Third Quarter 2023 vs.
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Third Quarter 2023 vs.
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September YTD 2023 vs.
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Apartment Units |
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77,698 |
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78,368 |
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76,789 |
Physical Occupancy |
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96.0% vs. 96.4% |
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96.0% vs. 95.9% |
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95.9% vs. 96.5% |
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Revenues |
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4.1% |
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0.7% |
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6.2% |
Expenses |
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3.1% |
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1.9% |
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5.3% |
NOI |
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4.6% |
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0.1% |
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6.6% |
On page 11 of this release, the Company has provided a breakout of Residential and Non-Residential same store results with definitions that can be found on page 33 of this release. Non-Residential operations account for approximately 3.6% of total revenues for the nine months ended September 30, 2023.
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.
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Third Quarter 2023 vs.
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Third Quarter 2023 vs.
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September YTD 2023 vs.
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% Change |
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% Change |
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% Change |
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Same Store Residential Revenues-
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Lease rates |
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5.0 |
% |
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1.3 |
% |
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7.1 |
% |
Leasing Concessions |
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(0.4 |
%) |
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(0.1 |
%) |
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(0.1 |
%) |
Vacancy gain (loss) |
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(0.5 |
%) |
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(0.2 |
%) |
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(0.7 |
%) |
Bad Debt, Net (1) |
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(0.3 |
%) |
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0.0 |
% |
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(0.7 |
%) |
Other (2) |
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0.6 |
% |
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0.0 |
% |
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0.7 |
% |
Same Store Residential Revenues-
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4.4 |
% |
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1.0 |
% |
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6.3 |
% |
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| (1) | Change in rental income due to bad debt write-offs and reserves, net of amounts (including governmental rental assistance payments) collected on previously written-off or reserved accounts. Comparable period changes in quarterly Bad Debt, Net will be volatile throughout 2023 primarily due to the timing of the current legal processes and governmental rental assistance received in 2022. See page 13 for more detail. |
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| (2) | Includes ancillary income, utility recoveries, early lease termination income, miscellaneous income and other items. |
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.
Residential Same Store Operating Statistics
The following table includes select operating metrics for Residential Same Store Properties (for 76,789 same store apartment units):
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October 2023 (1) |
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Q3 2023 |
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Q2 2023 |
Physical Occupancy |
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96.0% |
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96.0% |
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95.9% |
Percentage of Residents Renewing by quarter/month |
59.0% |
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54.0% |
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57.0% |
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New Lease Change (2) |
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(3.1%) |
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0.5% |
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2.3% |
Renewal Rate Achieved |
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5.0% |
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5.5% |
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5.9% |
Blended Rate |
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1.6% |
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3.1% |
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4.3% |
| (1) | October 2023 results are preliminary as of October 27th. |
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| (2) | Excluding the impact of San Francisco and Seattle, New Lease Change would have been (0.3%), 2.1% and 3.6% for October 2023, Q3 2023 and Q2 2023, respectively, which is in line with the Company's expectations and consistent with normal seasonal patterns. |
Investment Activity
The Company acquired two operating properties, both in suburban Atlanta, during the third quarter of 2023 - a recently completed 344-unit apartment property in Suwanee, which is currently in lease up, for approximately $98.0 million at a stabilized Acquisition Cap Rate of 5.4% and a 290-unit property in Decatur built in 2019, for approximately $81.7 million at an Acquisition Cap Rate of 5.1%. During the first nine months of 2023, the Company has acquired four operating properties, consisting of 1,183 apartment units, for an aggregate purchase price of approximately $366.3 million at a weighted average Acquisition Cap Rate of 5.5%.
Also during the third quarter of 2023, the Company sold a 166-unit property in Seattle for approximately $60.1 million at a Disposition Yield of 5.4%, generating an Unlevered IRR of 7.5%. During the first nine months of 2023, the Company sold eight properties, consisting of 413 apartment units, for an aggregate sale price of approximately $195.4 million at a weighted average Disposition Yield of 5.3%, generating an Unlevered IRR of 8.5%. Subsequent to the end of the quarter, the Company sold three properties located in our West Coast markets (San Francisco, Seattle and Los Angeles), consisting of 499 apartment units, for an aggregate sale price of approximately $184.6 million at a weighted average Disposition Yield of 5.8%.
Capital Markets Activity
In August 2023, the Company closed on secured loans totaling $550.0 million. The Company previously disclosed the rate lock on these loans in July 2023. After the effect of the Company’s hedges, the economic rate on these ten-year loans is approximately 4.7%. The proceeds from these loans were used, along with funding from the Company’s Commercial Paper Program, to paydown the $800.0 million secured debt pool that was due to mature in November 2023 and carried an interest rate of 4.21%. After this paydown, the Company has no significant debt maturities, other than commercial paper, which is supported by its revolving credit facility due 2027, until June 2025.
Fourth Quarter 2023 Guidance
The Company has established guidance ranges for the fourth quarter of 2023 EPS, FFO per share and Normalized FFO per share as listed below:
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Q4 2023
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EPS |
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$0.82 to $0.84 |
FFO per share |
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$1.00 to $1.02 |
Normalized FFO per share |
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$0.99 to $1.01 |
The difference between the third quarter of 2023 actual EPS of $0.45 and the fourth quarter of 2023 EPS guidance midpoint of $0.83 is due primarily to higher expected property sale gains and the items described below.
The difference between the third quarter of 2023 actual FFO of $0.96 per share and the fourth quarter of 2023 FFO guidance midpoint of $1.01 per share is due primarily to the items described below.
The difference between the third quarter of 2023 actual Normalized FFO of $0.96 per share and the fourth quarter of 2023 Normalized FFO guidance midpoint of $1.00 per share is due primarily to:
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Positive/(Negative)
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Fourth Quarter 2023 vs.
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Residential same store NOI |
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$ |
0.02 |
|
Non-Residential same store NOI |
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|
0.01 |
|
Corporate overhead |
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0.01 |
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Net |
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$ |
0.04 |
|
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 305 properties consisting of 80,683 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, Wednesday, November 1, 2023 at 10:00 a.m. CT. In connection with the conference call, the Company is also providing a Management Presentation on its website. Please visit the Investor section of the Company’s website at www.equityapartments.com for the webcast link.
Equity Residential |
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Consolidated Statements of Operations |
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(Amounts in thousands except per share data) |
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(Unaudited) |
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Nine Months Ended September 30, |
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Quarter Ended September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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REVENUES |
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Rental income |
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$ |
2,146,464 |
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$ |
2,035,477 |
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$ |
724,067 |
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$ |
695,099 |
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EXPENSES |
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Property and maintenance |
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391,437 |
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365,277 |
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129,087 |
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124,048 |
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Real estate taxes and insurance |
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312,607 |
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302,899 |
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102,858 |
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100,361 |
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Property management |
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90,314 |
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83,035 |
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28,169 |
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25,729 |
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General and administrative |
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49,135 |
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47,033 |
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14,094 |
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13,372 |
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Depreciation |
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661,921 |
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667,896 |
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224,736 |
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214,129 |
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Total expenses |
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1,505,414 |
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1,466,140 |
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498,944 |
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477,639 |
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Net gain (loss) on sales of real estate properties |
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127,034 |
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304,346 |
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26,912 |
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196,551 |
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Operating income |
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768,084 |
|
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873,683 |
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252,035 |
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|
414,011 |
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Interest and other income |
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11,296 |
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|
4,844 |
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7,627 |
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|
720 |
|
Other expenses |
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(20,517 |
) |
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(9,191 |
) |
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(4,958 |
) |
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(3,755 |
) |
Interest: |
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Expense incurred, net |
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(200,882 |
) |
|
|
(217,093 |
) |
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(68,891 |
) |
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(72,412 |
) |
Amortization of deferred financing costs |
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|
(7,023 |
) |
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(6,421 |
) |
|
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(3,027 |
) |
|
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(2,220 |
) |
Income before income and other taxes, income (loss) from
|
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|
550,958 |
|
|
|
645,822 |
|
|
|
182,786 |
|
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336,344 |
|
Income and other tax (expense) benefit |
|
|
(892 |
) |
|
|
(725 |
) |
|
|
(258 |
) |
|
|
(152 |
) |
Income (loss) from investments in unconsolidated entities |
|
|
(3,847 |
) |
|
|
(3,456 |
) |
|
|
(1,242 |
) |
|
|
(1,027 |
) |
Net income |
|
|
546,219 |
|
|
|
641,641 |
|
|
|
181,286 |
|
|
|
335,165 |
|
Net (income) loss attributable to Noncontrolling Interests: |
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Operating Partnership |
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(17,174 |
) |
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(21,024 |
) |
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(5,561 |
) |
|
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(10,997 |
) |
Partially Owned Properties |
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(5,299 |
) |
|
|
(2,726 |
) |
|
|
(3,217 |
) |
|
|
(1,143 |
) |
Net income attributable to controlling interests |
|
|
523,746 |
|
|
|
617,891 |
|
|
|
172,508 |
|
|
|
323,025 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares |
|
$ |
521,428 |
|
|
$ |
615,573 |
|
|
$ |
171,735 |
|
|
$ |
322,252 |
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Earnings per share – basic: |
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|
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Net income available to Common Shares |
|
$ |
1.38 |
|
|
$ |
1.64 |
|
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$ |
0.45 |
|
|
$ |
0.86 |
|
Weighted average Common Shares outstanding |
|
|
378,614 |
|
|
|
375,710 |
|
|
|
378,853 |
|
|
|
375,850 |
|
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|
||||
Earnings per share – diluted: |
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|
||||
Net income available to Common Shares |
|
$ |
1.38 |
|
|
$ |
1.63 |
|
|
$ |
0.45 |
|
|
$ |
0.86 |
|
Weighted average Common Shares outstanding |
|
|
391,135 |
|
|
|
389,394 |
|
|
|
391,351 |
|
|
|
389,300 |
|
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||||
Distributions declared per Common Share outstanding |
|
$ |
1.9875 |
|
|
$ |
1.875 |
|
|
$ |
0.6625 |
|
|
$ |
0.625 |
|
Equity Residential |
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Consolidated Statements of Funds From Operations and Normalized Funds From Operations |
||||||||||||||||
(Amounts in thousands except per share and Unit data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Nine Months Ended September 30, |
|
|
Quarter Ended September 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income |
|
$ |
546,219 |
|
|
$ |
641,641 |
|
|
$ |
181,286 |
|
|
$ |
335,165 |
|
Net (income) loss attributable to Noncontrolling Interests – Partially
|
|
(5,299 |
) |
|
|
(2,726 |
) |
|
|
(3,217 |
) |
|
|
(1,143 |
) |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Net income available to Common Shares and Units |
|
|
538,602 |
|
|
|
636,597 |
|
|
|
177,296 |
|
|
|
333,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation |
|
|
661,921 |
|
|
|
667,896 |
|
|
|
224,736 |
|
|
|
214,129 |
|
Depreciation – Non-real estate additions |
|
|
(3,291 |
) |
|
|
(3,189 |
) |
|
|
(1,032 |
) |
|
|
(1,075 |
) |
Depreciation – Partially Owned Properties |
|
|
(1,599 |
) |
|
|
(2,097 |
) |
|
|
(544 |
) |
|
|
(543 |
) |
Depreciation – Unconsolidated Properties |
|
|
1,921 |
|
|
|
1,897 |
|
|
|
695 |
|
|
|
657 |
|
Net (gain) loss on sales of unconsolidated entities - operating
|
|
|
— |
|
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
Net (gain) loss on sales of real estate properties |
|
|
(127,034 |
) |
|
|
(304,346 |
) |
|
|
(26,912 |
) |
|
|
(196,551 |
) |
Noncontrolling Interests share of gain (loss) on sales
|
|
|
2,336 |
|
|
|
— |
|
|
|
2,336 |
|
|
|
— |
|
FFO available to Common Shares and Units |
|
|
1,072,856 |
|
|
|
996,749 |
|
|
|
376,575 |
|
|
|
349,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustments (see note for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Write-off of pursuit costs |
|
|
2,739 |
|
|
|
3,296 |
|
|
|
746 |
|
|
|
781 |
|
Debt extinguishment and preferred share redemption (gains)
|
|
|
1,143 |
|
|
|
4,316 |
|
|
|
1,096 |
|
|
|
3,847 |
|
Non-operating asset (gains) losses |
|
|
(4,735 |
) |
|
|
(1,174 |
) |
|
|
(5,766 |
) |
|
|
156 |
|
Other miscellaneous items |
|
|
14,831 |
|
|
|
1,832 |
|
|
|
3,488 |
|
|
|
2,017 |
|
Normalized FFO available to Common Shares and Units |
|
$ |
1,086,834 |
|
|
$ |
1,005,019 |
|
|
$ |
376,139 |
|
|
$ |
356,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO |
|
$ |
1,075,174 |
|
|
$ |
999,067 |
|
|
$ |
377,348 |
|
|
$ |
350,639 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
FFO available to Common Shares and Units |
|
$ |
1,072,856 |
|
|
$ |
996,749 |
|
|
$ |
376,575 |
|
|
$ |
349,866 |
|
FFO per share and Unit – basic |
|
$ |
2.75 |
|
|
$ |
2.57 |
|
|
$ |
0.97 |
|
|
$ |
0.90 |
|
FFO per share and Unit – diluted |
|
$ |
2.74 |
|
|
$ |
2.56 |
|
|
$ |
0.96 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Normalized FFO |
|
$ |
1,089,152 |
|
|
$ |
1,007,337 |
|
|
$ |
376,912 |
|
|
$ |
357,440 |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
Normalized FFO available to Common Shares and Units |
|
$ |
1,086,834 |
|
|
$ |
1,005,019 |
|
|
$ |
376,139 |
|
|
$ |
356,667 |
|
Normalized FFO per share and Unit – basic |
|
$ |
2.79 |
|
|
$ |
2.59 |
|
|
$ |
0.96 |
|
|
$ |
0.92 |
|
Normalized FFO per share and Unit – diluted |
|
$ |
2.78 |
|
|
$ |
2.58 |
|
|
$ |
0.96 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average Common Shares and Units outstanding – basic |
|
|
389,991 |
|
|
|
387,603 |
|
|
|
390,087 |
|
|
|
387,745 |
|
Weighted average Common Shares and Units outstanding – diluted |
|
391,135 |
|
|
|
389,394 |
|
|
|
391,351 |
|
|
|
389,300 |
|
|
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.
Equity Residential |
||||||||
Consolidated Balance Sheets |
||||||||
(Amounts in thousands except for share amounts) |
||||||||
(Unaudited) |
||||||||
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2023 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Land |
|
$ |
5,593,425 |
|
|
$ |
5,580,878 |
|
Depreciable property |
|
|
22,911,464 |
|
|
|
22,334,369 |
|
Projects under development |
|
|
61,411 |
|
|
|
112,940 |
|
Land held for development |
|
|
62,533 |
|
|
|
60,567 |
|
Investment in real estate |
|
|
28,628,833 |
|
|
|
28,088,754 |
|
Accumulated depreciation |
|
|
(9,634,013 |
) |
|
|
(9,027,850 |
) |
Investment in real estate, net |
|
|
18,994,820 |
|
|
|
19,060,904 |
|
Investments in unconsolidated entities1 |
|
|
313,225 |
|
|
|
279,024 |
|
Cash and cash equivalents |
|
|
39,250 |
|
|
|
53,869 |
|
Restricted deposits |
|
|
87,477 |
|
|
|
83,303 |
|
Right-of-use assets |
|
|
460,489 |
|
|
|
462,956 |
|
Other assets |
|
|
213,714 |
|
|
|
278,206 |
|
Total assets |
|
$ |
20,108,975 |
|
|
$ |
20,218,262 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Mortgage notes payable, net |
|
$ |
1,634,726 |
|
|
$ |
1,953,438 |
|
Notes, net |
|
|
5,346,895 |
|
|
|
5,342,329 |
|
Line of credit and commercial paper |
|
|
497,636 |
|
|
|
129,955 |
|
Accounts payable and accrued expenses |
|
|
164,975 |
|
|
|
96,028 |
|
Accrued interest payable |
|
|
47,519 |
|
|
|
66,310 |
|
Lease liabilities |
|
|
312,781 |
|
|
|
308,748 |
|
Other liabilities |
|
|
231,652 |
|
|
|
306,941 |
|
Security deposits |
|
|
69,498 |
|
|
|
68,940 |
|
Distributions payable |
|
|
259,624 |
|
|
|
244,621 |
|
Total liabilities |
|
|
8,565,306 |
|
|
|
8,517,310 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
277,782 |
|
|
|
318,273 |
|
Equity: |
|
|
|
|
|
|
||
Shareholders' equity: |
|
|
|
|
|
|
||
Preferred Shares of beneficial interest, $0.01 par value;
|
|
|
37,280 |
|
|
|
37,280 |
|
Common Shares of beneficial interest, $0.01 par value;
|
|
|
3,797 |
|
|
|
3,784 |
|
Paid in capital |
|
|
9,589,057 |
|
|
|
9,476,085 |
|
Retained earnings |
|
|
1,426,632 |
|
|
|
1,658,837 |
|
Accumulated other comprehensive income (loss) |
|
|
5,099 |
|
|
|
(2,547 |
) |
Total shareholders’ equity |
|
|
11,061,865 |
|
|
|
11,173,439 |
|
Noncontrolling Interests: |
|
|
|
|
|
|
||
Operating Partnership |
|
|
205,845 |
|
|
|
209,961 |
|
Partially Owned Properties |
|
|
(1,823 |
) |
|
|
(721 |
) |
Total Noncontrolling Interests |
|
|
204,022 |
|
|
|
209,240 |
|
Total equity |
|
|
11,265,887 |
|
|
|
11,382,679 |
|
Total liabilities and equity |
|
$ |
20,108,975 |
|
|
$ |
20,218,262 |
|
1 Includes $250.9 million and $218.0 million in unconsolidated development projects as of September 30, 2023 and December 31, 2022, respectively. See Development and Lease-Up Projects for additional detail on unconsolidated projects.
Equity Residential
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
||||
Stabilized |
Average |
|||||||||||||||
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
||||
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
Established Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Los Angeles |
|
|
59 |
|
|
|
15,012 |
|
|
|
17.6 |
% |
|
$ |
2,911 |
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
5.2 |
% |
|
|
2,826 |
|
San Diego |
|
|
12 |
|
|
|
2,878 |
|
|
|
4.0 |
% |
|
|
3,063 |
|
Subtotal – Southern California |
|
|
84 |
|
|
|
21,918 |
|
|
|
26.8 |
% |
|
|
2,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
San Francisco |
|
|
44 |
|
|
|
11,790 |
|
|
|
15.8 |
% |
|
|
3,304 |
|
Washington, D.C. |
|
|
48 |
|
|
|
15,028 |
|
|
|
15.6 |
% |
|
|
2,647 |
|
New York |
|
|
34 |
|
|
|
8,536 |
|
|
|
13.9 |
% |
|
|
4,531 |
|
Boston |
|
|
27 |
|
|
|
7,170 |
|
|
|
11.4 |
% |
|
|
3,525 |
|
Seattle |
|
|
45 |
|
|
|
9,363 |
|
|
|
10.7 |
% |
|
|
2,571 |
|
Subtotal – Established Markets |
|
|
282 |
|
|
|
73,805 |
|
|
|
94.2 |
% |
|
|
3,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expansion Markets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denver |
|
|
9 |
|
|
|
2,785 |
|
|
|
2.8 |
% |
|
|
2,409 |
|
Atlanta |
|
|
7 |
|
|
|
2,111 |
|
|
|
1.9 |
% |
|
|
2,160 |
|
Dallas/Ft. Worth |
|
|
4 |
|
|
|
1,241 |
|
|
|
0.7 |
% |
|
|
1,897 |
|
Austin |
|
|
3 |
|
|
|
741 |
|
|
|
0.4 |
% |
|
|
1,855 |
|
Subtotal – Expansion Markets |
|
|
23 |
|
|
|
6,878 |
|
|
|
5.8 |
% |
|
|
2,182 |
|
Total |
|
|
305 |
|
|
|
80,683 |
|
|
|
100.0 |
% |
|
$ |
3,046 |
|
|
|
Properties |
|
Apartment Units |
Wholly Owned Properties |
|
291 |
|
77,623 |
Partially Owned Properties – Consolidated |
|
14 |
|
3,060 |
|
|
305 |
|
80,683 |
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
Equity Residential |
Portfolio Rollforward Q3 2023 |
||||||||||||||||
($ in thousands) |
||||||||||||||||
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
6/30/2023 |
|
|
304 |
|
|
|
80,212 |
|
|
|
|
|
|
|
||
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Rental Properties |
|
|
1 |
|
|
|
290 |
|
|
$ |
81,734 |
|
|
|
5.1 |
% |
Consolidated Rental Properties – Not Stabilized (1) |
|
|
1 |
|
|
|
344 |
|
|
$ |
98,000 |
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||||
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Rental Properties |
|
|
(1 |
) |
|
|
(166 |
) |
|
$ |
(60,100 |
) |
|
|
(5.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Configuration Changes |
|
|
— |
|
|
|
3 |
|
|
|
|
|
|
|
||
9/30/2023 |
|
|
305 |
|
|
|
80,683 |
|
|
|
|
|
|
|
||
Portfolio Rollforward 2023 |
||||||||||||||||
($ in thousands) |
||||||||||||||||
|
|
Properties |
|
|
Apartment
|
|
|
Purchase
|
|
|
Acquisition
|
|
||||
12/31/2022 |
|
|
308 |
|
|
|
79,597 |
|
|
|
|
|
|
|
||
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Rental Properties |
|
|
2 |
|
|
|
577 |
|
|
$ |
189,734 |
|
|
|
5.1 |
% |
Consolidated Rental Properties – Not Stabilized (1) |
|
|
2 |
|
|
|
606 |
|
|
$ |
176,600 |
|
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition
|
|
||||
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated Rental Properties |
|
|
(8 |
) |
|
|
(413 |
) |
|
$ |
(195,400 |
) |
|
|
(5.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Completed Developments – Consolidated |
|
|
1 |
|
|
|
312 |
|
|
|
|
|
|
|
||
Configuration Changes |
|
|
— |
|
|
|
4 |
|
|
|
|
|
|
|
||
9/30/2023 |
|
|
305 |
|
|
|
80,683 |
|
|
|
|
|
|
|
||
| (1) | The Company acquired two properties in the Atlanta market during the nine months ended September 30, 2023, including a property in the third quarter of 2023, that are in lease-up and are expected to stabilize in their second year of ownership at the weighted average Acquisition Cap Rates listed above. |
Equity Residential |
Third Quarter 2023 vs. Third Quarter 2022 |
||||||||||||||||||||||||||||||||
Same Store Results/Statistics Including 77,698 Same Store Apartment Units |
||||||||||||||||||||||||||||||||
($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
Third Quarter 2023 |
|
Third Quarter 2022 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
681,279 |
|
(1) |
4.4% |
|
$ |
22,811 |
|
(2) |
(5.4%) |
|
$ |
704,090 |
|
|
4.1% |
|
Revenues |
|
$ |
652,278 |
|
|
$ |
24,109 |
|
|
$ |
676,387 |
|
Expenses |
|
$ |
216,943 |
|
|
3.1% |
|
$ |
6,531 |
|
|
5.0% |
|
$ |
223,474 |
|
|
3.1% |
|
Expenses |
|
$ |
210,513 |
|
|
$ |
6,222 |
|
|
$ |
216,735 |
|
NOI |
|
$ |
464,336 |
|
|
5.1% |
|
$ |
16,280 |
|
|
(9.0%) |
|
$ |
480,616 |
|
|
4.6% |
|
NOI |
|
$ |
441,765 |
|
|
$ |
17,887 |
|
|
$ |
459,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
3,048 |
|
|
5.0% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,904 |
|
|
|
|
|
|
|
|||||
Physical Occupancy |
|
96.0 |
% |
|
(0.4%) |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.4 |
% |
|
|
|
|
|
|
||||||
Turnover |
|
13.8 |
% |
|
(0.2%) |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
14.0 |
% |
|
|
|
|
|
|
||||||
Third Quarter 2023 vs. Second Quarter 2023 |
||||||||||||||||||||||||||||||||
Same Store Results/Statistics Including 78,368 Same Store Apartment Units |
||||||||||||||||||||||||||||||||
($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
Third Quarter 2023 |
|
Second Quarter 2023 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
689,144 |
|
(1) |
1.0% |
|
$ |
23,976 |
|
(2) |
(9.3%) |
|
$ |
713,120 |
|
|
0.7% |
|
Revenues |
|
$ |
682,035 |
|
|
$ |
26,440 |
|
|
$ |
708,475 |
|
Expenses |
|
$ |
219,491 |
|
|
2.1% |
|
$ |
6,907 |
|
|
(6.2%) |
|
$ |
226,398 |
|
|
1.9% |
|
Expenses |
|
$ |
214,894 |
|
|
$ |
7,365 |
|
|
$ |
222,259 |
|
NOI |
|
$ |
469,653 |
|
|
0.5% |
|
$ |
17,069 |
|
|
(10.5%) |
|
$ |
486,722 |
|
|
0.1% |
|
NOI |
|
$ |
467,141 |
|
|
$ |
19,075 |
|
|
$ |
486,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
3,057 |
|
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
3,027 |
|
|
|
|
|
|
|
|||||
Physical Occupancy |
|
96.0 |
% |
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
95.9 |
% |
|
|
|
|
|
|
||||||
Turnover |
|
13.8 |
% |
|
2.2% |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
11.6 |
% |
|
|
|
|
|
|
||||||
September YTD 2023 vs. September YTD 2022 |
||||||||||||||||||||||||||||||||
Same Store Results/Statistics Including 76,789 Same Store Apartment Units |
||||||||||||||||||||||||||||||||
($ in thousands except for Average Rental Rate) |
||||||||||||||||||||||||||||||||
September YTD 2023 |
|
September YTD 2022 |
|
|||||||||||||||||||||||||||||
|
|
Residential |
|
|
%
|
|
Non-
|
|
|
%
|
|
Total |
|
|
%
|
|
|
|
Residential |
|
|
Non-
|
|
|
Total |
|
||||||
Revenues |
|
$ |
1,997,058 |
|
(1) |
6.3% |
|
$ |
72,798 |
|
(2) |
2.8% |
|
$ |
2,069,856 |
|
|
6.2% |
|
Revenues |
|
$ |
1,878,918 |
|
|
$ |
70,830 |
|
|
$ |
1,949,748 |
|
Expenses |
|
$ |
644,494 |
|
|
5.2% |
|
$ |
20,113 |
|
|
9.4% |
|
$ |
664,607 |
|
|
5.3% |
|
Expenses |
|
$ |
612,892 |
|
|
$ |
18,389 |
|
|
$ |
631,281 |
|
NOI |
|
$ |
1,352,564 |
|
|
6.8% |
|
$ |
52,685 |
|
|
0.5% |
|
$ |
1,405,249 |
|
|
6.6% |
|
NOI |
|
$ |
1,266,026 |
|
|
$ |
52,441 |
|
|
$ |
1,318,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Rental Rate |
|
$ |
3,015 |
|
|
7.0% |
|
|
|
|
|
|
|
|
|
|
|
Average Rental Rate |
$ |
2,819 |
|
|
|
|
|
|
|
|||||
Physical Occupancy |
|
95.9 |
% |
|
(0.6%) |
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy |
|
96.5 |
% |
|
|
|
|
|
|
||||||
Turnover |
|
34.3 |
% |
|
0.2% |
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
34.1 |
% |
|
|
|
|
|
|
||||||
| (1) | See page 12 for Same Store Residential Revenues with Leasing Concessions reflected on a cash basis. See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
| (2) | Includes the negative impact from the non-cash write-off of approximately $1.5 million in straight-line receivables during the third quarter of 2023 due to the recent bankruptcy of Rite Aid. |
Equity Residential |
Same Store Residential Revenues – GAAP to Cash Basis (1) |
|||||||||||||||||||||||
($ in thousands) |
|||||||||||||||||||||||
|
Third Quarter 2023 vs. Third Quarter 2022 |
|
|
Third Quarter 2023 vs. Second Quarter 2023 |
|
|
Sept. YTD 2023 vs. Sept YTD 2022 |
|
|||||||||||||||
|
77,698 Same Store Apartment Units |
|
|
78,368 Same Store Apartment Units |
|
|
76,789 Same Store Apartment Units |
|
|||||||||||||||
|
Q3 2023 |
|
|
Q3 2022 |
|
|
Q3 2023 |
|
|
Q2 2023 |
|
|
Sept. YTD 2023 |
|
|
Sept. YTD 2022 |
|
||||||
Same Store Residential Revenues (GAAP Basis) |
$ |
681,279 |
|
|
$ |
652,278 |
|
|
$ |
689,144 |
|
|
$ |
682,035 |
|
|
$ |
1,997,058 |
|
|
$ |
1,878,918 |
|
Leasing Concessions amortized |
|
3,743 |
|
|
|
1,633 |
|
|
|
4,106 |
|
|
|
3,233 |
|
|
|
8,378 |
|
|
|
7,245 |
|
Leasing Concessions granted (2) |
|
(5,190 |
) |
|
|
(641 |
) |
|
|
(5,433 |
) |
|
|
(4,069 |
) |
|
|
(12,821 |
) |
|
|
(3,443 |
) |
Same Store Residential Revenues with Leasing
|
$ |
679,832 |
|
|
$ |
653,270 |
|
|
$ |
687,817 |
|
|
$ |
681,199 |
|
|
$ |
1,992,615 |
|
|
$ |
1,882,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - GAAP revenue |
|
4.4 |
% |
|
|
|
|
|
1.0 |
% |
|
|
|
|
|
6.3 |
% |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
% change - cash revenue |
|
4.1 |
% |
|
|
|
|
|
1.0 |
% |
|
|
|
|
|
5.8 |
% |
|
|
|
|||
| (1) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional detail. |
|
| (2) | Concession usage is primarily concentrated in San Francisco and Seattle and is expected to continue through the remainder of 2023. |
Same Store Net Operating Income By Quarter |
||||||||||||||||||||
Including 76,789 Same Store Apartment Units |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
|
|
Q3 2023 |
|
|
Q2 2023 |
|
|
Q1 2023 |
|
|
Q4 2022 |
|
|
Q3 2022 |
|
|||||
Same store revenues |
|
$ |
697,066 |
|
|
$ |
692,267 |
|
|
$ |
680,523 |
|
|
$ |
674,851 |
|
|
$ |
669,971 |
|
Same store expenses |
|
|
221,035 |
|
|
|
217,113 |
|
|
|
226,459 |
|
|
|
210,495 |
|
|
|
214,192 |
|
Same store NOI
|
|
$ |
476,031 |
|
|
$ |
475,154 |
|
|
$ |
454,064 |
|
|
$ |
464,356 |
|
|
$ |
455,779 |
|
Equity Residential |
Same Store Resident/Tenant Accounts Receivable Balances |
||||||||||||||||
Including 76,789 Same Store Apartment Units |
||||||||||||||||
($ in thousands) |
||||||||||||||||
|
|
Residential |
|
|
Non-Residential |
|
||||||||||
Balance Sheet (Other assets): |
|
September 30, 2023 |
|
|
June 30, 2023 |
|
|
September 30, 2023 |
|
|
June 30, 2023 |
|
||||
Resident/tenant accounts receivable balances |
$ |
24,846 |
|
|
$ |
26,626 |
|
|
$ |
2,714 |
|
|
$ |
2,389 |
|
|
Allowance for doubtful accounts |
|
(19,574 |
) |
|
|
(22,335 |
) |
|
|
(1,703 |
) |
|
|
(1,383 |
) |
|
Net receivable balances |
$ |
5,272 |
|
|
$ |
4,291 |
|
|
$ |
1,011 |
|
|
$ |
1,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line receivable balances |
|
$ |
7,458 |
|
(1) |
$ |
6,012 |
|
|
$ |
11,800 |
|
(2) |
$ |
13,546 |
|
| (1) | Total same store Residential Leasing Concessions granted in the third quarter of 2023 were approximately $5.1 million. The straight-line receivable balance of $7.5 million reflects Residential Leasing Concessions that the Company expects will be primarily recognized as a reduction of rental revenues in the remainder of 2023 and the first three quarters of 2024. |
|
| (2) | During the third quarter of 2023, the Company recorded a non-cash write-off of approximately $1.5 million in straight-line receivables due to the recent bankruptcy of Rite Aid. |
Same Store Residential Bad Debt |
||||||||||||||||||||
Including 76,789 Same Store Apartment Units |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
Income Statement (Rental income): |
|
Q3 2023 |
|
|
Q2 2023 |
|
|
Q3 2022 |
|
|
September
|
|
|
September
|
|
|||||
Bad debts before governmental rental assistance |
|
$ |
8,993 |
|
|
$ |
9,506 |
|
|
$ |
13,456 |
|
|
$ |
30,378 |
|
|
$ |
45,875 |
|
Governmental rental assistance received |
|
(406 |
) |
|
|
(660 |
) |
|
|
(7,000 |
) |
|
|
(2,245 |
) |
|
|
(30,882 |
) |
|
Bad Debt, Net |
|
$ |
8,587 |
|
|
$ |
8,846 |
|
|
$ |
6,456 |
|
|
$ |
28,133 |
|
|
$ |
14,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bad Debt, Net as a % of Same Store Residential Revenues |
|
1.3 |
% |
|
|
1.3 |
% |
|
|
1.0 |
% |
|
|
1.4 |
% |
|
|
0.8 |
% |
|
Equity Residential Third Quarter 2023 vs. Third Quarter 2022 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year's Quarter |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,415 |
|
|
|
17.9 |
% |
|
$ |
2,896 |
|
|
|
95.7 |
% |
|
|
12.1 |
% |
|
|
3.8 |
% |
(1) |
|
7.8 |
% |
|
|
2.2 |
% |
|
|
5.2 |
% |
|
|
(1.2 |
%) |
|
|
1.5 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.5 |
% |
|
|
2,826 |
|
|
|
96.7 |
% |
|
|
10.9 |
% |
|
|
5.7 |
% |
|
|
7.7 |
% |
|
|
5.1 |
% |
|
|
6.1 |
% |
|
|
(0.4 |
%) |
|
|
0.2 |
% |
San Diego |
|
|
2,878 |
|
|
|
4.2 |
% |
|
|
3,063 |
|
|
|
95.3 |
% |
|
|
12.5 |
% |
|
|
5.8 |
% |
|
|
3.1 |
% |
|
|
6.7 |
% |
|
|
7.3 |
% |
|
|
(1.4 |
%) |
|
|
1.3 |
% |
Subtotal – Southern California |
|
21,321 |
|
|
|
27.6 |
% |
|
|
2,905 |
|
|
|
95.9 |
% |
|
|
12.0 |
% |
|
|
4.5 |
% |
|
|
7.2 |
% |
|
|
3.4 |
% |
|
|
5.6 |
% |
|
|
(1.0 |
%) |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Washington, D.C. |
|
|
14,716 |
|
|
|
16.5 |
% |
|
|
2,643 |
|
|
|
96.8 |
% |
|
|
14.4 |
% |
|
|
5.7 |
% |
|
|
(1.7 |
%) |
|
|
9.6 |
% |
|
|
5.8 |
% |
|
|
(0.1 |
%) |
|
|
0.2 |
% |
San Francisco |
|
|
11,368 |
|
|
|
16.3 |
% |
|
|
3,308 |
|
|
|
95.5 |
% |
|
|
13.2 |
% |
|
|
2.7 |
% |
(1) |
|
2.3 |
% |
|
|
2.8 |
% |
|
|
3.0 |
% |
|
|
(0.4 |
%) |
|
|
(0.1 |
%) |
New York |
|
|
8,536 |
|
|
|
14.1 |
% |
|
|
4,531 |
|
|
|
96.5 |
% |
|
|
12.7 |
% |
|
|
6.7 |
% |
|
|
3.6 |
% |
|
|
9.1 |
% |
|
|
7.1 |
% |
|
|
(0.4 |
%) |
|
|
(2.1 |
%) |
Seattle |
|
|
9,362 |
|
|
|
10.4 |
% |
|
|
2,571 |
|
|
|
95.2 |
% |
|
|
14.4 |
% |
|
|
0.2 |
% |
|
|
6.4 |
% |
|
|
(2.3 |
%) |
|
|
0.5 |
% |
|
|
(0.2 |
%) |
|
|
(1.5 |
%) |
Boston |
|
|
6,700 |
|
|
|
10.3 |
% |
|
|
3,452 |
|
|
|
96.0 |
% |
|
|
16.1 |
% |
|
|
5.8 |
% |
|
|
(0.4 |
%) |
|
|
8.5 |
% |
|
|
5.8 |
% |
|
|
0.1 |
% |
|
|
(1.6 |
%) |
Denver |
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,416 |
|
|
|
96.5 |
% |
|
|
18.5 |
% |
|
|
3.4 |
% |
|
|
4.5 |
% |
|
|
2.9 |
% |
|
|
3.3 |
% |
|
|
0.1 |
% |
|
|
(1.6 |
%) |
Other Expansion Markets |
|
|
3,197 |
|
|
|
2.2 |
% |
|
|
1,994 |
|
|
|
94.6 |
% |
|
|
18.0 |
% |
|
|
6.7 |
% |
|
|
(0.3 |
%) |
|
|
12.7 |
% |
|
|
7.5 |
% |
|
|
(1.0 |
%) |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
77,698 |
|
|
|
100.0 |
% |
|
$ |
3,048 |
|
|
|
96.0 |
% |
|
|
13.8 |
% |
|
|
4.4 |
% |
|
|
3.1 |
% |
|
|
5.1 |
% |
|
|
5.0 |
% |
|
|
(0.4 |
%) |
|
|
(0.2 |
%) |
| (1) | Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the third quarter of 2022, same store revenue growth would have been 4.6% and 3.5% for Los Angeles and San Francisco, respectively. |
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.
Equity Residential Third Quarter 2023 vs. Second Quarter 2023 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Quarter |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Q3 2023
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,415 |
|
|
|
17.7 |
% |
|
$ |
2,896 |
|
|
|
95.7 |
% |
|
|
12.1 |
% |
|
|
2.0 |
% |
|
|
2.9 |
% |
|
|
1.6 |
% |
|
|
1.2 |
% |
|
|
0.7 |
% |
|
|
0.9 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.5 |
% |
|
|
2,826 |
|
|
|
96.7 |
% |
|
|
10.9 |
% |
|
|
2.2 |
% |
|
|
1.8 |
% |
|
|
2.3 |
% |
|
|
1.4 |
% |
|
|
0.8 |
% |
|
|
0.5 |
% |
San Diego |
|
|
2,878 |
|
|
|
4.1 |
% |
|
|
3,063 |
|
|
|
95.3 |
% |
|
|
12.5 |
% |
|
|
1.7 |
% |
|
|
1.0 |
% |
|
|
1.9 |
% |
|
|
2.2 |
% |
|
|
(0.5 |
%) |
|
|
2.6 |
% |
Subtotal – Southern California |
|
21,321 |
|
|
|
27.3 |
% |
|
|
2,905 |
|
|
|
95.9 |
% |
|
|
12.0 |
% |
|
|
2.0 |
% |
|
|
2.5 |
% |
|
|
1.8 |
% |
|
|
1.4 |
% |
|
|
0.6 |
% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Washington, D.C. |
|
|
14,716 |
|
|
|
16.4 |
% |
|
|
2,643 |
|
|
|
96.8 |
% |
|
|
14.4 |
% |
|
|
2.1 |
% |
|
|
2.5 |
% |
|
|
1.9 |
% |
|
|
2.2 |
% |
|
|
0.0 |
% |
|
|
3.8 |
% |
San Francisco |
|
|
11,568 |
|
|
|
16.2 |
% |
|
|
3,303 |
|
|
|
95.5 |
% |
|
|
13.2 |
% |
|
|
0.5 |
% |
|
|
2.7 |
% |
|
|
(0.4 |
%) |
|
|
0.6 |
% |
|
|
0.0 |
% |
|
|
2.3 |
% |
New York |
|
|
8,536 |
|
|
|
13.9 |
% |
|
|
4,531 |
|
|
|
96.5 |
% |
|
|
12.7 |
% |
|
|
0.4 |
% |
|
|
1.2 |
% |
|
|
(0.1 |
%) |
|
|
0.9 |
% |
|
|
(0.6 |
%) |
|
|
2.6 |
% |
Seattle |
|
|
9,362 |
|
|
|
10.3 |
% |
|
|
2,571 |
|
|
|
95.2 |
% |
|
|
14.4 |
% |
|
|
(0.7 |
%) |
|
|
3.8 |
% |
|
|
(2.5 |
%) |
|
|
(0.7 |
%) |
|
|
0.1 |
% |
|
|
0.0 |
% |
Boston |
|
|
7,170 |
|
|
|
11.1 |
% |
|
|
3,525 |
|
|
|
96.1 |
% |
|
|
16.0 |
% |
|
|
0.9 |
% |
|
|
1.5 |
% |
|
|
0.7 |
% |
|
|
1.4 |
% |
|
|
(0.4 |
%) |
|
|
4.4 |
% |
Denver |
|
|
2,498 |
|
|
|
2.6 |
% |
|
|
2,416 |
|
|
|
96.5 |
% |
|
|
18.5 |
% |
|
|
0.2 |
% |
|
|
7.8 |
% |
|
|
(2.8 |
%) |
|
|
(0.1 |
%) |
|
|
0.3 |
% |
|
|
1.3 |
% |
Other Expansion Markets |
|
|
3,197 |
|
|
|
2.2 |
% |
|
|
1,994 |
|
|
|
94.6 |
% |
|
|
18.0 |
% |
|
|
0.0 |
% |
|
|
(4.5 |
%) |
|
|
3.6 |
% |
|
|
0.2 |
% |
|
|
(0.3 |
%) |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
78,368 |
|
|
|
100.0 |
% |
|
$ |
3,057 |
|
|
|
96.0 |
% |
|
|
13.8 |
% |
|
|
1.0 |
% |
|
|
2.1 |
% |
|
|
0.5 |
% |
|
|
1.0 |
% |
|
|
0.1 |
% |
|
|
2.2 |
% |
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.
Equity Residential September YTD 2023 vs. September YTD 2022 Same Store Residential Results/Statistics by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) from Prior Year |
|
||||||||||||||||||||||||||
Markets/Metro Areas |
|
Apartment
|
|
|
Sept. YTD 23
|
|
|
Sept. YTD 23
|
|
|
Sept. YTD 23
|
|
|
Sept. YTD 23
|
|
|
Revenues |
|
|
Expenses |
|
|
NOI |
|
|
Average
|
|
|
Physical
|
|
|
Turnover |
|
|||||||||||
Los Angeles |
|
|
14,415 |
|
|
|
17.9 |
% |
|
$ |
2,844 |
|
|
|
95.4 |
% |
|
|
33.3 |
% |
|
|
3.2 |
% |
(1) |
|
9.0 |
% |
|
|
0.7 |
% |
|
|
4.8 |
% |
|
|
(1.5 |
%) |
|
|
5.0 |
% |
Orange County |
|
|
4,028 |
|
|
|
5.6 |
% |
|
|
2,777 |
|
|
|
96.3 |
% |
|
|
28.7 |
% |
|
|
6.2 |
% |
|
|
9.5 |
% |
|
|
5.3 |
% |
|
|
7.2 |
% |
|
|
(0.8 |
%) |
|
|
2.9 |
% |
San Diego |
|
|
2,706 |
|
|
|
3.9 |
% |
|
|
2,965 |
|
|
|
95.5 |
% |
|
|
31.1 |
% |
|
|
6.8 |
% |
|
|
6.4 |
% |
|
|
6.9 |
% |
|
|
8.3 |
% |
|
|
(1.5 |
%) |
|
|
1.8 |
% |
Subtotal – Southern California |
|
21,149 |
|
|
|
27.4 |
% |
|
|
2,847 |
|
|
|
95.6 |
% |
|
|
32.1 |
% |
|
|
4.2 |
% |
|
|
8.8 |
% |
|
|
2.5 |
% |
|
|
5.7 |
% |
|
|
(1.4 |
%) |
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
San Francisco |
|
|
11,368 |
|
|
|
16.5 |
% |
|
|
3,280 |
|
|
|
95.6 |
% |
|
|
33.6 |
% |
|
|
4.1 |
% |
|
|
5.4 |
% |
|
|
3.5 |
% |
|
|
4.9 |
% |
|
|
(0.7 |
%) |
|
|
1.5 |
% |
Washington, D.C. |
|
|
14,400 |
|
|
|
16.1 |
% |
|
|
2,581 |
|
|
|
96.7 |
% |
|
|
32.3 |
% |
|
|
6.2 |
% |
|
|
2.0 |
% |
|
|
8.4 |
% |
|
|
6.3 |
% |
|
|
(0.1 |
%) |
|
|
(1.6 |
%) |
New York |
|
|
8,536 |
|
|
|
14.3 |
% |
|
|
4,483 |
|
|
|
96.8 |
% |
|
|
30.3 |
% |
|
|
12.8 |
% |
|
|
3.6 |
% |
|
|
20.6 |
% |
|
|
13.1 |
% |
|
|
(0.2 |
%) |
|
|
(4.6 |
%) |
Seattle |
|
|
9,362 |
|
|
|
10.9 |
% |
|
|
2,581 |
|
|
|
95.1 |
% |
|
|
39.8 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.3 |
% |
|
|
(0.1 |
%) |
|
|
(1.9 |
%) |
Boston |
|
|
6,700 |
|
|
|
10.2 |
% |
|
|
3,400 |
|
|
|
96.0 |
% |
|
|
35.3 |
% |
|
|
7.9 |
% |
|
|
3.4 |
% |
|
|
9.8 |
% |
|
|
8.1 |
% |
|
|
(0.2 |
%) |
|
|
(2.1 |
%) |
Denver |
|
|
2,498 |
|
|
|
2.7 |
% |
|
|
2,406 |
|
|
|
96.3 |
% |
|
|
46.7 |
% |
|
|
5.6 |
% |
|
|
9.4 |
% |
|
|
4.1 |
% |
|
|
5.5 |
% |
|
|
(0.1 |
%) |
|
|
(1.7 |
%) |
Other Expansion Markets |
|
|
2,776 |
|
|
|
1.9 |
% |
|
|
1,989 |
|
|
|
94.6 |
% |
|
|
44.6 |
% |
|
|
5.4 |
% |
|
|
10.7 |
% |
|
|
1.2 |
% |
|
|
6.9 |
% |
|
|
(1.6 |
%) |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
|
|
76,789 |
|
|
|
100.0 |
% |
|
$ |
3,015 |
|
|
|
95.9 |
% |
|
|
34.3 |
% |
|
|
6.3 |
% |
|
|
5.2 |
% |
|
|
6.8 |
% |
|
|
7.0 |
% |
|
|
(0.6 |
%) |
|
|
0.2 |
% |
| (1) | Excluding Bad Debt, Net, which includes the positive impact of governmental rental assistance in the nine months ended September 30, 2022, same store revenue growth would have been 5.6%. |
Note: The above table reflects Residential same store results only. Residential operations account for approximately 96.4% of total revenues for the nine months ended September 30, 2023.
Equity Residential |
Same Store Residential Net Effective Lease Pricing Statistics |
||||||||||||||||||||||||
For 76,789 Same Store Apartment Units |
||||||||||||||||||||||||
|
|
New Lease Change (1) |
|
|
Renewal Rate Achieved (1) |
|
|
Blended Rate (1) |
|
|||||||||||||||
Markets/Metro Areas |
|
Q3 2023 |
|
|
Q2 2023 |
|
|
Q3 2023 |
|
|
Q2 2023 |
|
|
Q3 2023 |
|
|
Q2 2023 |
|
||||||
Southern California |
|
|
2.0 |
% |
|
|
3.5 |
% |
|
|
6.5 |
% |
|
|
7.0 |
% |
|
|
4.2 |
% |
|
|
5.4 |
% |
San Francisco |
|
|
(3.8 |
%) |
|
|
1.4 |
% |
|
|
4.4 |
% |
|
|
6.0 |
% |
|
|
0.0 |
% |
|
|
3.8 |
% |
Washington, D.C. |
|
|
4.3 |
% |
|
|
4.8 |
% |
|
|
6.7 |
% |
|
|
6.5 |
% |
|
|
5.5 |
% |
|
|
5.7 |
% |
New York |
|
|
1.4 |
% |
|
|
4.2 |
% |
|
|
5.3 |
% |
|
|
5.1 |
% |
|
|
3.7 |
% |
|
|
4.7 |
% |
Seattle |
|
|
(4.4 |
%) |
|
|
(3.8 |
%) |
|
|
2.5 |
% |
|
|
4.5 |
% |
|
|
(0.9 |
%) |
|
|
0.4 |
% |
Boston |
|
|
3.7 |
% |
|
|
4.4 |
% |
|
|
6.1 |
% |
|
|
6.1 |
% |
|
|
5.0 |
% |
|
|
5.3 |
% |
Denver |
|
|
0.1 |
% |
|
|
0.9 |
% |
|
|
5.3 |
% |
|
|
5.0 |
% |
|
|
2.4 |
% |
|
|
2.6 |
% |
Other Expansion Markets |
|
|
(8.5 |
%) |
|
|
(4.9 |
%) |
|
|
3.4 |
% |
|
|
4.5 |
% |
|
|
(3.8 |
%) |
|
|
(0.8 |
%) |
Total |
|
|
0.5 |
% |
(2) |
|
2.3 |
% |
|
|
5.5 |
% |
|
|
5.9 |
% |
|
|
3.1 |
% |
|
|
4.3 |
% |
(1) |
See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for definitions. See page 3 for October 2023 preliminary data. |
|
(2) |
Excluding the impact of San Francisco and Seattle, New Lease Change would have been 2.1% for the third quarter of 2023. |
Equity Residential |
Third Quarter 2023 vs. Third Quarter 2022 |
||||||||||||||||||||
Total Same Store Operating Expenses Including 77,698 Same Store Apartment Units |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
|
|
Q3 2023 |
|
|
Q3 2022 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
Real estate taxes |
|
$ |
90,840 |
|
|
$ |
89,113 |
|
|
$ |
1,727 |
|
|
|
1.9 |
% |
|
|
40.7 |
% |
On-site payroll |
|
|
44,288 |
|
|
|
41,613 |
|
|
|
2,675 |
|
|
|
6.4 |
% |
|
|
19.8 |
% |
Utilities |
|
|
34,261 |
|
|
|
35,427 |
|
|
|
(1,166 |
) |
|
|
(3.3 |
%) |
|
|
15.3 |
% |
Repairs and maintenance |
|
|
31,093 |
|
|
|
29,239 |
|
|
|
1,854 |
|
|
|
6.3 |
% |
|
|
13.9 |
% |
Insurance |
|
|
8,406 |
|
|
|
7,432 |
|
|
|
974 |
|
|
|
13.1 |
% |
|
|
3.8 |
% |
Leasing and advertising |
|
|
2,713 |
|
|
|
2,991 |
|
|
|
(278 |
) |
|
|
(9.3 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
11,873 |
|
|
|
10,920 |
|
|
|
953 |
|
|
|
8.7 |
% |
|
|
5.3 |
% |
Total Same Store Operating Expenses (2)
|
|
$ |
223,474 |
|
|
$ |
216,735 |
|
|
$ |
6,739 |
|
|
|
3.1 |
% |
|
|
100.0 |
% |
September YTD 2023 vs. September YTD 2022 |
||||||||||||||||||||
Total Same Store Operating Expenses Including 76,789 Same Store Apartment Units |
||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||
|
|
YTD 2023 |
|
|
YTD 2022 |
|
|
$
|
|
|
%
|
|
|
% of
|
|
|||||
Real estate taxes |
|
$ |
270,055 |
|
|
$ |
264,117 |
|
|
$ |
5,938 |
|
|
|
2.2 |
% |
|
|
40.6 |
% |
On-site payroll |
|
|
128,291 |
|
|
|
120,976 |
|
|
|
7,315 |
|
|
|
6.0 |
% |
|
|
19.3 |
% |
Utilities |
|
|
103,709 |
|
|
|
100,418 |
|
|
|
3,291 |
|
|
|
3.3 |
% |
|
|
15.6 |
% |
Repairs and maintenance |
|
|
91,709 |
|
|
|
81,926 |
|
|
|
9,783 |
|
|
|
11.9 |
% |
|
|
13.8 |
% |
Insurance |
|
|
25,149 |
|
|
|
22,043 |
|
|
|
3,106 |
|
|
|
14.1 |
% |
|
|
3.8 |
% |
Leasing and advertising |
|
|
7,652 |
|
|
|
7,874 |
|
|
|
(222 |
) |
|
|
(2.8 |
%) |
|
|
1.2 |
% |
Other on-site operating expenses |
|
|
38,042 |
|
|
|
33,927 |
|
|
|
4,115 |
|
|
|
12.1 |
% |
|
|
5.7 |
% |
Total Same Store Operating Expenses (2)
|
|
$ |
664,607 |
|
|
$ |
631,281 |
|
|
$ |
33,326 |
|
|
|
5.3 |
% |
|
|
100.0 |
% |
| (1) | The quarter-over-quarter and year-over-year changes were primarily driven by the following factors: |
|
|
||
Real estate taxes – Increase due to modest escalation in rates and assessed values. |
||
|
||
On-site payroll – Increase due primarily to fewer staffing vacancies compared to the same periods of 2022 and elevated employee benefit costs, partially offset by the impact of innovation initiatives. |
||
|
||
Utilities – Quarter-over-quarter decrease primarily driven by lower commodity prices for gas and electric. Year-over-year increase primarily driven by higher commodity prices for gas earlier in the year and higher water, sewer and trash expense. |
||
|
||
Repairs and maintenance – Quarter-over-quarter increase primarily driven by continued wage pressure, particularly due to higher minimum wage on contracted services. Year-over-year increase was also impacted by increased outsourcing due to higher internal staffing utilization to address issues from California rain storms that occurred earlier this year. |
||
|
||
Insurance – Increase due to higher premiums on property insurance renewal due to challenging conditions in the insurance market. |
||
|
||
Other on-site operating expenses – Increase primarily driven by higher property-related legal expenses. |
||
|
||
| (2) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
Equity Residential |
Debt Summary as of September 30, 2023 |
||||||||||||||||
($ in thousands) |
||||||||||||||||
|
|
Debt
|
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||
Secured |
|
$ |
1,634,726 |
|
|
|
21.9 |
% |
|
|
3.64 |
% |
|
|
8.1 |
|
Unsecured |
|
|
5,844,531 |
|
|
|
78.1 |
% |
|
|
3.60 |
% |
|
|
8.3 |
|
Total |
|
$ |
7,479,257 |
|
|
|
100.0 |
% |
|
|
3.61 |
% |
|
|
8.3 |
|
Fixed Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
$ |
1,397,970 |
|
|
|
18.7 |
% |
|
|
3.52 |
% |
|
|
7.7 |
|
Unsecured – Public |
|
|
5,346,895 |
|
|
|
71.5 |
% |
|
|
3.52 |
% |
|
|
9.1 |
|
Fixed Rate Debt |
|
|
6,744,865 |
|
|
|
90.2 |
% |
|
|
3.52 |
% |
|
|
8.8 |
|
Floating Rate Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured – Conventional |
|
|
— |
|
|
|
— |
|
|
|
7.18 |
% |
|
|
— |
|
Secured – Tax Exempt |
|
|
236,756 |
|
|
|
3.2 |
% |
|
|
3.49 |
% |
|
|
10.7 |
|
Unsecured – Revolving Credit Facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.1 |
|
Unsecured – Commercial Paper Program (2) |
|
|
497,636 |
|
|
|
6.6 |
% |
|
|
5.36 |
% |
|
|
— |
|
Floating Rate Debt |
|
|
734,392 |
|
|
|
9.8 |
% |
|
|
4.75 |
% |
|
|
3.6 |
|
Total |
|
$ |
7,479,257 |
|
|
|
100.0 |
% |
|
|
3.61 |
% |
|
|
8.3 |
|
| (1) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
|
| (2) | At September 30, 2023, the weighted average maturity of commercial paper outstanding was 31 days. The weighted average amount outstanding for the nine months ended September 30, 2023 was approximately $236.4 million. |
Note: The Company capitalized interest of approximately $9.6 million and $4.2 million during the nine months ended September 30, 2023 and 2022, respectively. The Company capitalized interest of approximately $2.6 million and $1.9 million during the quarters ended September 30, 2023 and 2022, respectively.
Equity Residential |
Debt Maturity Schedule as of September 30, 2023 |
||||||||||||||||||||||||
($ in thousands) |
||||||||||||||||||||||||
Year |
|
Fixed
|
|
|
Floating
|
|
|
Total |
|
|
% of Total |
|
|
Weighted
|
|
|
Weighted
|
|
||||||
2023 |
|
$ |
— |
|
|
$ |
502,805 |
|
(2) |
$ |
502,805 |
|
|
|
6.7 |
% |
|
N/A |
|
|
|
5.61 |
% |
|
2024 |
|
|
— |
|
|
|
6,200 |
|
|
|
6,200 |
|
|
|
0.1 |
% |
|
N/A |
|
|
|
4.01 |
% |
|
2025 |
|
|
450,000 |
|
|
|
8,100 |
|
|
|
458,100 |
|
|
|
6.1 |
% |
|
|
3.38 |
% |
|
|
3.38 |
% |
2026 |
|
|
592,025 |
|
|
|
9,000 |
|
|
|
601,025 |
|
|
|
7.9 |
% |
|
|
3.58 |
% |
|
|
3.58 |
% |
2027 |
|
|
400,000 |
|
|
|
9,800 |
|
|
|
409,800 |
|
|
|
5.4 |
% |
|
|
3.25 |
% |
|
|
3.26 |
% |
2028 |
|
|
900,000 |
|
|
|
10,700 |
|
|
|
910,700 |
|
|
|
12.0 |
% |
|
|
3.79 |
% |
|
|
3.79 |
% |
2029 |
|
|
888,120 |
|
|
|
11,500 |
|
|
|
899,620 |
|
|
|
11.9 |
% |
|
|
3.30 |
% |
|
|
3.31 |
% |
2030 |
|
|
1,148,462 |
|
|
|
12,700 |
|
|
|
1,161,162 |
|
|
|
15.4 |
% |
|
|
2.53 |
% |
|
|
2.54 |
% |
2031 |
|
|
528,500 |
|
|
|
39,800 |
|
|
|
568,300 |
|
|
|
7.5 |
% |
|
|
1.94 |
% |
|
|
2.08 |
% |
2032 |
|
|
— |
|
|
|
28,000 |
|
|
|
28,000 |
|
|
|
0.4 |
% |
|
N/A |
|
|
|
3.73 |
% |
|
2033+ |
|
|
1,900,850 |
|
|
|
110,900 |
|
|
|
2,011,750 |
|
|
|
26.6 |
% |
|
|
4.63 |
% |
|
|
4.50 |
% |
Subtotal |
|
|
6,807,957 |
|
|
|
749,505 |
|
|
|
7,557,462 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
3.65 |
% |
Deferred Financing Costs and Unamortized (Discount) |
|
|
(63,092 |
) |
|
|
(15,113 |
) |
|
|
(78,205 |
) |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|||
Total |
|
$ |
6,744,865 |
|
|
$ |
734,392 |
|
|
$ |
7,479,257 |
|
|
|
100.0 |
% |
|
|
3.53 |
% |
|
|
3.65 |
% |
| (1) | See Additional Reconciliations and Definitions of Non-GAAP Financial Measures and Other Terms for additional details. |
|
| (2) | Includes $500.0 million in principal outstanding on the Company's Commercial Paper Program. |
Equity Residential |
Selected Unsecured Public Debt Covenants |
||||
|
|
September 30, |
|
June 30, |
|
|
2023 |
|
2023 |
Debt to Adjusted Total Assets (not to exceed 60%) |
|
26.9% |
|
26.9% |
|
|
|
|
|
Secured Debt to Adjusted Total Assets (not to exceed 40%) |
|
6.7% |
|
7.7% |
|
|
|
|
|
Consolidated Income Available for Debt Service to
|
|
6.08 |
|
6.21 |
|
|
|
|
|
Total Unencumbered Assets to Unsecured Debt
|
|
502.3% |
|
518.6% |
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 |
||||
|
|
September 30, |
|
June 30, |
|
|
2023 |
|
2023 |
Total debt to Normalized EBITDAre |
|
4.28x |
|
4.30x |
|
|
|
|
|
Net debt to Normalized EBITDAre |
|
4.24x |
|
4.27x |
|
|
|
|
|
Unencumbered NOI as a % of total NOI |
|
89.8% |
|
88.5% |
Note: See Normalized EBITDAre Reconciliations for detail.
Equity Residential |
Capital Structure as of September 30, 2023 |
||||||||||||||||||||
(Amounts in thousands except for share/unit and per share amounts) |
||||||||||||||||||||
Secured Debt |
|
|
|
|
|
|
|
$ |
1,634,726 |
|
|
|
21.9 |
% |
|
|
|
|||
Unsecured Debt |
|
|
|
|
|
|
|
|
5,844,531 |
|
|
|
78.1 |
% |
|
|
|
|||
Total Debt |
|
|
|
|
|
|
|
|
7,479,257 |
|
|
|
100.0 |
% |
|
|
24.5 |
% |
||
Common Shares (includes Restricted Shares) |
|
|
379,723,838 |
|
|
|
97.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Units (includes OP Units and Restricted Units) |
|
|
11,733,485 |
|
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Total Shares and Units |
|
|
391,457,323 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|||
Common Share Price at September 30, 2023 |
|
$ |
58.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
22,982,459 |
|
|
|
99.8 |
% |
|
|
|
|||
Perpetual Preferred Equity (see below) |
|
|
|
|
|
|
|
|
37,280 |
|
|
|
0.2 |
% |
|
|
|
|||
Total Equity |
|
|
|
|
|
|
|
|
23,019,739 |
|
|
|
100.0 |
% |
|
|
75.5 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Market Capitalization |
|
|
|
|
|
|
|
$ |
30,498,996 |
|
|
|
|
|
|
100.0 |
% |
|||
Perpetual Preferred Equity as of September 30, 2023 |
||||||||||||||||||||
(Amounts in thousands except for share and per share amounts) |
||||||||||||||||||||
Series |
|
Call Date |
|
Outstanding
|
|
|
Liquidation
|
|
|
Annual
|
|
|
Annual
|
|
||||||
Preferred Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
8.29% Series K |
|
12/10/26 |
|
|
745,600 |
|
|
$ |
37,280 |
|
|
$ |
4.145 |
|
|
$ |
3,091 |
|
||
Equity Residential Common Share and Unit Weighted Average Amounts Outstanding |
|
|
Sept. YTD 2023 |
|
|
Sept. YTD 2022 |
|
|
Q3 2023 |
|
|
Q3 2022 |
|
||||
Weighted Average Amounts Outstanding for Net Income Purposes: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common Shares - basic |
|
|
378,613,604 |
|
|
|
375,710,361 |
|
|
|
378,852,510 |
|
|
|
375,849,762 |
|
Shares issuable from assumed conversion/vesting of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
- OP Units |
|
|
11,377,365 |
|
|
|
11,892,922 |
|
|
|
11,234,877 |
|
|
|
11,895,558 |
|
- long-term compensation shares/units |
|
|
1,144,517 |
|
|
|
1,784,035 |
|
|
|
1,263,254 |
|
|
|
1,554,258 |
|
- ATM forward sales |
|
�� |
— |
|
|
|
6,276 |
|
|
|
||||||