CHICAGO–(BUSINESS WIRE)–Equity Residential (NYSE: EQR) today reported results for the quarter and nine months ended September 30, 2019. 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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2019 |
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2018 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
0.71 |
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$ |
0.58 |
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$ |
0.13 |
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22.4 |
% |
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Funds from Operations (FFO) per share |
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$ |
0.92 |
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$ |
0.79 |
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$ |
0.13 |
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16.5 |
% |
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Normalized FFO per share |
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$ |
0.91 |
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$ |
0.83 |
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$ |
0.08 |
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9.6 |
% |
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Nine Months Ended September 30, |
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2019 |
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2018 |
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$ Change |
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% Change |
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Earnings Per Share (EPS) |
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$ |
1.82 |
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$ |
1.46 |
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$ |
0.36 |
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24.7 |
% |
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Funds from Operations (FFO) per share |
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$ |
2.53 |
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$ |
2.30 |
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$ |
0.23 |
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10.0 |
% |
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Normalized FFO per share |
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$ |
2.58 |
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$ |
2.41 |
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$ |
0.17 |
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7.1 |
% |
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“We are pleased to report that our same store revenues, expenses and NOI as well as our Normalized FFO results are tracking in line with or better than the improved expectations we provided in July and that the efforts of our hard working colleagues across the Company produced the highest resident retention in our history. We continue to see robust demand to live in the vibrant urban and dense suburban centers of the cities in which we operate,” said Mark J. Parrell, Equity Residential’s President and CEO.
Highlights
- The Company produced same store revenue growth of 3.4% for the third quarter of 2019, with Physical Occupancy of 96.5% and Renewal Rate Achieved growth of 5.0%.
- The Company produced Normalized FFO per share growth of 9.6% for the third quarter of 2019.
- During the third quarter of 2019, the Company acquired four apartment properties, totaling 1,084 apartment units, for an aggregate purchase price of approximately $489.9 million.
- During the third quarter of 2019, the Company issued $600.0 million of unsecured notes at a coupon rate of 2.5% and a yield of 2.56%, the lowest ten-year yield in both the Company’s and REIT industry’s histories.
Results Per Share
The change in EPS for both the quarter and nine months ended September 30, 2019 compared to the same periods of 2018, are due primarily to higher property and unconsolidated sale gains in the third quarter and/or full year of 2019, the various adjustment items listed on page 25 of this release and the items described below.
The per share changes in FFO for both the quarter and nine months ended September 30, 2019 compared to the same periods of 2018, are due primarily to the various adjustment items listed on page 25 of this release and the items described below.
The per share changes in Normalized FFO are due primarily to:
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Positive/(Negative) Impact |
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Third Quarter 2019 vs. Third Quarter 2018 |
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September YTD 2019 vs. September YTD 2018 |
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Same Store NOI |
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$ |
0.04 |
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$ |
0.10 |
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Lease-Up NOI and other non-same store NOI |
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0.02 |
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0.06 |
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2019 and 2018 transaction activity impact on NOI |
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0.02 |
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0.03 |
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Interest expense |
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0.01 |
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0.01 |
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Other items, including corporate overhead 1 |
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(0.01 |
) |
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(0.03 |
) |
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Net |
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$ |
0.08 |
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$ |
0.17 |
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1 Corporate overhead includes property management and general and administrative expenses.
The Company has a glossary of defined terms and related reconciliations of Non-GAAP financial measures on pages 27 through 32 of this release. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7, 29 and 30 of this release and the Company has included guidance for 2019 Normalized FFO per share on page 26 and 2019 FFO per share and 2019 EPS on page 30 of this release.
Same Store Results
The following table shows the increases in same store results for the third quarter 2019 to third quarter 2018 comparison, which includes 75,290 apartment units, and for the nine months ended September 30, 2019 to nine months ended September 30, 2018 comparison, which includes 72,979 apartment units. The Company’s Physical Occupancy was 96.5% compared to 96.3% for the third quarter of 2019 and 2018, respectively, and 96.5% compared to 96.2% for the first nine months of 2019 and 2018, respectively.
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Third Quarter 2019 vs. Third Quarter 2018 |
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September YTD 2019 vs. September YTD 2018 |
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Revenues |
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3.4% |
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3.3% |
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Expenses |
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3.7% |
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3.8% |
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NOI |
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3.3% |
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3.0% |
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Investment Activity
The Company acquired four apartment properties during the third quarter of 2019, totaling 1,084 apartment units, for an aggregate purchase price of approximately $489.9 million at a weighted average Acquisition Capitalization Rate of 4.4%. The properties are located in Los Angeles, the San Francisco Bay Area and suburban Denver.
During the third quarter of 2019, the Company completed a 137 apartment unit property in Seattle and an 84 apartment unit property in Cambridge, MA. Also during the quarter, the Company started a 200 apartment unit joint venture development property in the San Francisco Bay Area at a development cost of approximately $117.8 million as well as a wholly-owned 154 apartment unit property in suburban Washington, D.C. that will be developed at a cost of approximately $75.3 million.
The Company sold seven properties during the third quarter of 2019, totaling 641 apartment units, for an aggregate sale price of approximately $303.9 million at a weighted average Disposition Yield of 4.7%, generating an Unlevered IRR of 7.6%. One of the properties is located in Arlington, VA and the other six are located in Berkeley, CA.
During the first nine months of 2019, the Company acquired ten properties, totaling 2,728 apartment units, for an aggregate purchase price of approximately $1.1 billion at a weighted average Acquisition Capitalization Rate of 4.6%.
During the first nine months of 2019, the Company sold nine wholly-owned properties, totaling 1,202 apartment units, for an aggregate sale price of approximately $706.7 million at a weighted average Disposition Yield of 4.5%, generating an Unlevered IRR of 8.0%. During the first nine months of 2019, the Company also sold two unconsolidated properties, totaling 945 apartment units, for an aggregate sale price of approximately $394.5 million at a weighted average Disposition Yield of 4.7%, received net proceeds of approximately $78.3 million and recognized a GAAP gain on sale of approximately $69.5 million from these sales.
Capital Markets Activity
On August 27, 2019, the Company issued $600.0 million of 10-year unsecured notes at a coupon rate of 2.5% and yield of 2.56%. After the effect of underwriters’ fees and other costs associated with the offering, the all-in effective yield of the notes is approximately 2.65%. As previously disclosed, on July 1, 2019 the Company paid off $950.0 million in secured and unsecured debt with a Weighted Average Rate of 4.62%.
Fourth Quarter 2019 Guidance
The Company has established guidance ranges for the fourth quarter of 2019 EPS, FFO per share and Normalized FFO per share as listed below:
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Q4 2019 Guidance |
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EPS |
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$0.63 to $0.65 |
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FFO per share |
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$0.87 to $0.89 |
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Normalized FFO per share |
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$0.87 to $0.89 |
The difference between the third quarter 2019 actual EPS of $0.71 and the fourth quarter 2019 EPS guidance midpoint of $0.64 is due primarily to lower expected property sale gains and the items described below.
The difference between the third quarter 2019 actual FFO of $0.92 per share and the fourth quarter 2019 FFO guidance midpoint of $0.88 per share is due primarily to the items described below.
The difference between the third quarter 2019 actual Normalized FFO of $0.91 per share and the fourth quarter 2019 Normalized FFO guidance midpoint of $0.88 per share is due primarily to:
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Positive/(Negative) Impact |
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Fourth Quarter 2019 vs. Third Quarter 2019 |
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Same Store NOI |
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$ |
(0.01 |
) |
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2019 and 2018 transaction activity impact on NOI |
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(0.01 |
) |
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Other items, including corporate overhead |
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(0.01 |
) |
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Net |
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$ |
(0.03 |
) |
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Full Year 2019 Guidance
The Company has revised its guidance for its full year 2019 same store operating performance, EPS, FFO per share, Normalized FFO per share and transactions as listed below:
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Revised |
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Previous |
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Same Store: |
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Physical Occupancy |
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96.4% |
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96.4% |
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Revenue change |
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3.3% |
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3.1% to 3.5% |
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Expense change |
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3.8% |
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3.5% to 4.0% |
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NOI change |
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3.1% |
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2.7% to 3.5% |
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EPS |
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$2.45 to $2.47 |
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$2.48 to $2.54 |
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FFO per share |
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$3.40 to $3.42 |
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$3.36 to $3.42 |
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Normalized FFO per share |
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$3.46 to $3.48 |
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$3.43 to $3.49 |
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Transactions: |
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Consolidated rental acquisitions |
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$1.1 billion |
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$1.0 billion |
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Consolidated rental dispositions |
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$1.0 billion |
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$1.0 billion |
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Transaction Accretion (Dilution) |
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None |
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None |
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The change in the full year 2019 EPS guidance range is due primarily to higher expected depreciation expense and the items described below.
The change in the full year 2019 FFO per share guidance range is due primarily to the items described below.
The change in the full year 2019 Normalized FFO per share guidance range is due primarily to:
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Positive/(Negative) Impact |
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Revised Full Year 2019 vs. Previous Full Year 2019 |
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Property NOI |
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$ |
0.01 |
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Interest expense |
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0.01 |
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Other items, including corporate overhead |
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(0.01 |
) |
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Net |
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$ |
0.01 |
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Fourth Quarter and Full Year 2019 Earnings and Conference Call
Equity Residential expects to announce its fourth quarter and full year 2019 results on Tuesday, January 28, 2020 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, January 29, 2020.
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 rental apartment properties located in urban and high-density suburban communities where today’s renters want to live, work and play. Equity Residential owns or has investments in 308 properties consisting of 80,299 apartment units, primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver. 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, competition and local government regulation. 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, October 23, 2019 at 10:00 a.m. CT. Please visit the Investor section of the Company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.
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Equity Residential Consolidated Statements of Operations (Amounts in thousands except per share data) (Unaudited) |
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Nine Months Ended September 30, |
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Quarter Ended September 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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REVENUES |
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Rental income |
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$ |
2,016,796 |
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$ |
1,925,128 |
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$ |
685,120 |
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$ |
652,677 |
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Fee and asset management |
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360 |
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563 |
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25 |
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190 |
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Total revenues |
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2,017,156 |
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1,925,691 |
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685,145 |
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652,867 |
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EXPENSES |
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Property and maintenance |
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338,497 |
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322,487 |
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114,966 |
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110,541 |
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Real estate taxes and insurance |
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270,434 |
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268,784 |
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87,546 |
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87,388 |
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Property management |
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72,705 |
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69,175 |
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21,940 |
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22,247 |
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General and administrative |
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41,127 |
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41,420 |
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11,417 |
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12,640 |
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Depreciation |
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616,201 |
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583,869 |
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211,478 |
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194,618 |
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Total expenses |
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1,338,964 |
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1,285,735 |
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447,347 |
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427,434 |
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Net gain (loss) on sales of real estate properties |
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269,400 |
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256,834 |
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130,565 |
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114,672 |
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Impairment |
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— |
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(702 |
) |
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— |
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(702 |
) |
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Operating income |
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947,592 |
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896,088 |
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368,363 |
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339,403 |
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Interest and other income |
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2,221 |
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14,860 |
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631 |
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7,864 |
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Other expenses |
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(11,205 |
) |
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(14,871 |
) |
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(2,813 |
) |
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(7,661 |
) |
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Interest: |
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Expense incurred, net |
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(289,776 |
) |
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(321,454 |
) |
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(85,936 |
) |
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(111,219 |
) |
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Amortization of deferred financing costs |
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(8,664 |
) |
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(9,054 |
) |
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(2,881 |
) |
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(3,276 |
) |
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Income before income and other taxes, income (loss) from |
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investments in unconsolidated entities and net gain (loss) |
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on sales of land parcels |
640,168 |
565,569 |
277,364 |
225,111 |
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Income and other tax (expense) benefit |
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(749 |
) |
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(767 |
) |
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(265 |
) |
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(280 |
) |
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Income (loss) from investments in unconsolidated entities |
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66,906 |
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(2,993 |
) |
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(1,152 |
) |
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(985 |
) |
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Net gain (loss) on sales of land parcels |
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2,077 |
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|
995 |
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|
1,899 |
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— |
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Net income |
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708,402 |
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|
562,804 |
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|
277,846 |
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|
223,846 |
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Net (income) loss attributable to Noncontrolling Interests: |
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Operating Partnership |
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(25,339 |
) |
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(20,517 |
) |
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(9,910 |
) |
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(8,159 |
) |
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Partially Owned Properties |
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(2,450 |
) |
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(1,939 |
) |
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(830 |
) |
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(750 |
) |
|
Net income attributable to controlling interests |
|
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680,613 |
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|
540,348 |
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|
267,106 |
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|
214,937 |
|
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Preferred distributions |
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(2,318 |
) |
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(2,318 |
) |
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(773 |
) |
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|
(773 |
) |
|
Net income available to Common Shares |
|
$ |
678,295 |
|
|
$ |
538,030 |
|
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$ |
266,333 |
|
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$ |
214,164 |
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Earnings per share – basic: |
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Net income available to Common Shares |
|
$ |
1.83 |
|
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$ |
1.46 |
|
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$ |
0.72 |
|
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$ |
0.58 |
|
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Weighted average Common Shares outstanding |
|
|
370,227 |
|
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|
367,920 |
|
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|
370,768 |
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|
368,028 |
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Earnings per share – diluted: |
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Net income available to Common Shares |
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$ |
1.82 |
|
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$ |
1.46 |
|
|
$ |
0.71 |
|
|
$ |
0.58 |
|
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Weighted average Common Shares outstanding |
|
|
386,177 |
|
|
|
383,433 |
|
|
|
386,896 |
|
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|
383,884 |
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Distributions declared per Common Share outstanding |
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$ |
1.7025 |
|
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$ |
1.62 |
|
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$ |
0.5675 |
|
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$ |
0.54 |
|
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Equity Residential Consolidated Statements of Funds From Operations and Normalized Funds From Operations (Amounts in thousands except per share data) (Unaudited) |
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Nine Months Ended September 30, |
|
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Quarter Ended September 30, |
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|
|
|
2019 |
|
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2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Net income |
|
$ |
708,402 |
|
|
$ |
562,804 |
|
|
$ |
277,846 |
|
|
$ |
223,846 |
|
|
Net (income) loss attributable to Noncontrolling Interests – Partially |
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|
Owned Properties |
|
|
(2,450 |
) |
|
|
(1,939 |
) |
|
|
(830 |
) |
|
|
(750 |
) |
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
Net income available to Common Shares and Units |
|
|
703,634 |
|
|
|
558,547 |
|
|
|
276,243 |
|
|
|
222,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
616,201 |
|
|
|
583,869 |
|
|
|
211,478 |
|
|
|
194,618 |
|
|
Depreciation – Non-real estate additions |
|
|
(4,235 |
) |
|
|
(3,397 |
) |
|
|
(1,932 |
) |
|
|
(1,137 |
) |
|
Depreciation – Partially Owned Properties |
|
|
(2,700 |
) |
|
|
(2,837 |
) |
|
|
(898 |
) |
|
|
(904 |
) |
|
Depreciation – Unconsolidated Properties |
|
|
2,385 |
|
|
|
3,447 |
|
|
|
613 |
|
|
|
1,150 |
|
|
Net (gain) loss on sales of unconsolidated entities – operating |
||||||||||||||||
|
assets |
|
|
(69,522 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net (gain) loss on sales of real estate properties |
|
|
(269,400 |
) |
|
|
(256,834 |
) |
|
|
(130,565 |
) |
|
|
(114,672 |
) |
|
Noncontrolling Interests share of gain (loss) on sales |
||||||||||||||||
|
of real estate properties |
|
|
— |
|
|
|
(284 |
) |
|
|
— |
|
|
|
— |
|
|
Impairment – operating assets |
|
|
— |
|
|
|
702 |
|
|
|
— |
|
|
|
702 |
|
|
FFO available to Common Shares and Units |
|
|
976,363 |
|
|
|
883,213 |
|
|
|
354,939 |
|
|
|
302,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (see page 25 for additional detail): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment – non-operating assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Write-off of pursuit costs |
|
|
4,098 |
|
|
|
3,125 |
|
|
|
1,111 |
|
|
|
1,059 |
|
|
Debt extinguishment and preferred share redemption (gains) |
||||||||||||||||
|
losses |
|
|
11,807 |
|
|
|
41,142 |
|
|
|
(4,840 |
) |
|
|
17,603 |
|
|
Non-operating asset (gains) losses |
|
|
(1,200 |
) |
|
|
(255 |
) |
|
|
(1,452 |
) |
|
|
223 |
|
|
Other miscellaneous items |
|
|
6,539 |
|
|
|
(2,608 |
) |
|
|
2,121 |
|
|
|
(1,138 |
) |
|
Normalized FFO available to Common Shares and Units |
|
$ |
997,607 |
|
|
$ |
924,617 |
|
|
$ |
351,879 |
|
|
$ |
319,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
|
$ |
978,681 |
|
|
$ |
885,531 |
|
|
$ |
355,712 |
|
|
$ |
302,853 |
|
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
FFO available to Common Shares and Units |
|
$ |
976,363 |
|
|
$ |
883,213 |
|
|
$ |
354,939 |
|
|
$ |
302,080 |
|
|
FFO per share and Unit – basic |
|
$ |
2.55 |
|
|
$ |
2.32 |
|
|
$ |
0.93 |
|
|
$ |
0.79 |
|
|
FFO per share and Unit – diluted |
|
$ |
2.53 |
|
|
$ |
2.30 |
|
|
$ |
0.92 |
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized FFO |
|
$ |
999,925 |
|
|
$ |
926,935 |
|
|
$ |
352,652 |
|
|
$ |
320,600 |
|
|
Preferred distributions |
|
|
(2,318 |
) |
|
|
(2,318 |
) |
|
|
(773 |
) |
|
|
(773 |
) |
|
Normalized FFO available to Common Shares and Units |
|
$ |
997,607 |
|
|
$ |
924,617 |
|
|
$ |
351,879 |
|
|
$ |
319,827 |
|
|
Normalized FFO per share and Unit – basic |
|
$ |
2.60 |
|
|
$ |
2.43 |
|
|
$ |
0.92 |
|
|
$ |
0.84 |
|
|
Normalized FFO per share and Unit – diluted |
|
$ |
2.58 |
|
|
$ |
2.41 |
|
|
$ |
0.91 |
|
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares and Units outstanding – basic |
|
|
383,142 |
|
|
|
380,791 |
|
|
|
383,709 |
|
|
|
380,912 |
|
|
Weighted average Common Shares and Units outstanding – diluted |
|
|
386,177 |
|
|
|
383,433 |
|
|
|
386,896 |
|
|
|
383,884 |
|
Note: See page 25 for additional detail regarding the adjustments from FFO to Normalized FFO. See pages 27 through 32 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, |
|
||
|
|
|
2019 |
|
|
2018 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Land |
|
$ |
5,955,121 |
|
|
$ |
5,875,803 |
|
|
Depreciable property |
|
|
21,168,255 |
|
|
|
20,435,901 |
|
|
Projects under development |
|
|
143,434 |
|
|
|
109,409 |
|
|
Land held for development |
|
|
91,017 |
|
|
|
89,909 |
|
|
Investment in real estate |
|
|
27,357,827 |
|
|
|
26,511,022 |
|
|
Accumulated depreciation |
|
|
(7,171,876 |
) |
|
|
(6,696,281 |
) |
|
Investment in real estate, net |
|
|
20,185,951 |
|
|
|
19,814,741 |
|
|
Investments in unconsolidated entities |
|
|
52,474 |
|
|
|
58,349 |
|
|
Cash and cash equivalents |
|
|
28,777 |
|
|
|
47,442 |
|
|
Restricted deposits |
|
|
55,819 |
|
|
|
68,871 |
|
|
Right-of-use assets |
|
|
481,044 |
|
|
|
— |
|
|
Other assets |
|
|
249,991 |
|
|
|
404,806 |
|
|
Total assets |
|
$ |
21,054,056 |
|
|
$ |
20,394,209 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Mortgage notes payable, net |
|
$ |
1,962,471 |
|
|
$ |
2,385,470 |
|
|
Notes, net |
|
|
6,675,084 |
|
|
|
5,933,286 |
|
|
Line of credit and commercial paper |
|
|
354,381 |
|
|
|
499,183 |
|
|
Accounts payable and accrued expenses |
|
|
151,680 |
|
|
|
102,471 |
|
|
Accrued interest payable |
|
|
73,747 |
|
|
|
62,622 |
|
|
Lease liabilities |
|
|
333,312 |
|
|
|
— |
|
|
Other liabilities |
|
|
312,849 |
|
|
|
358,563 |
|
|
Security deposits |
|
|
70,398 |
|
|
|
67,258 |
|
|
Distributions payable |
|
|
218,136 |
|
|
|
206,601 |
|
|
Total liabilities |
|
|
10,152,058 |
|
|
|
9,615,454 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable Noncontrolling Interests – Operating Partnership |
|
|
494,999 |
|
|
|
379,106 |
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
Preferred Shares of beneficial interest, $0.01 par value; |
||||||||
|
100,000,000 shares authorized; 745,600 shares issued and |
||||||||
|
outstanding as of September 30, 2019 and December 31, 2018 |
|
|
37,280 |
|
|
|
37,280 |
|
|
Common Shares of beneficial interest, $0.01 par value; |
||||||||
|
1,000,000,000 shares authorized; 371,327,332 shares issued |
||||||||
|
and outstanding as of September 30, 2019 and 369,405,161 |
||||||||
|
shares issued and outstanding as of December 31, 2018 |
|
|
3,713 |
|
|
|
3,694 |
|
|
Paid in capital |
|
|
8,917,312 |
|
|
|
8,935,453 |
|
|
Retained earnings |
|
|
1,308,423 |
|
|
|
1,261,763 |
|
|
Accumulated other comprehensive income (loss) |
(84,092 |
) |
(64,986 |
) |
||||
|
Total shareholders’ equity |
|
|
10,182,636 |
|
|
|
10,173,204 |
|
|
Noncontrolling Interests: |
|
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
226,065 |
|
|
|
228,738 |
|
|
Partially Owned Properties |
|
|
(1,702 |
) |
|
|
(2,293 |
) |
|
Total Noncontrolling Interests |
|
|
224,363 |
|
|
|
226,445 |
|
|
Total equity |
|
|
10,406,999 |
|
|
|
10,399,649 |
|
|
Total liabilities and equity |
|
$ |
21,054,056 |
|
|
$ |
20,394,209 |
|
|
Equity Residential Portfolio Summary As of September 30, 2019 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% of Stabilized |
|
|
Average |
|
||
|
|
|
|
|
|
|
Apartment |
|
|
Budgeted |
|
|
Rental |
|
|||
|
Markets/Metro Areas |
|
Properties |
|
|
Units |
|
|
NOI |
|
|
Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles |
|
|
72 |
|
|
|
16,603 |
|
|
|
18.9 |
% |
|
$ |
2,627 |
|
|
Orange County |
|
|
13 |
|
|
|
4,028 |
|
|
|
4.3 |
% |
|
|
2,276 |
|
|
San Diego |
|
|
12 |
|
|
|
3,385 |
|
|
|
3.8 |
% |
|
|
2,437 |
|
|
Subtotal – Southern California |
|
|
97 |
|
|
|
24,016 |
|
|
|
27.0 |
% |
|
|
2,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Francisco |
|
|
51 |
|
|
|
13,606 |
|
|
|
20.6 |
% |
|
|
3,322 |
|
|
Washington DC |
|
|
49 |
|
|
|
16,129 |
|
|
|
16.8 |
% |
|
|
2,451 |
|
|
New York |
|
|
37 |
|
|
|
9,606 |
|
|
|
14.5 |
% |
|
|
3,944 |
|
|
Seattle |
|
|
43 |
|
|
|
8,752 |
|
|
|
9.8 |
% |
|
|
2,446 |
|
|
Boston |
|
|
25 |
|
|
|
6,430 |
|
|
|
9.8 |
% |
|
|
3,168 |
|
|
Denver |
|
|
5 |
|
|
|
1,624 |
|
|
|
1.5 |
% |
|
|
2,071 |
|
|
Other Markets |
|
|
1 |
|
|
|
136 |
|
|
|
— |
% |
|
|
1,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
308 |
|
|
|
80,299 |
|
|
|
100.0 |
% |
|
$ |
2,852 |
|
|
|
|
Properties |
|
|
Apartment Units |
|
||
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned Properties |
|
|
290 |
|
|
|
76,602 |
|
|
Master-Leased Properties – Consolidated |
|
|
1 |
|
|
|
162 |
|
|
Partially Owned Properties – Consolidated |
|
|
17 |
|
|
|
3,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
308 |
|
|
|
80,299 |
|
Note: Projects under development are not included in the Portfolio Summary until construction has been completed.
|
Equity Residential |
||||||||||||||||||
|
Portfolio Rollforward Q3 2019 ($ in thousands) |
||||||||||||||||||
|
|
|
|
|
Properties |
|
|
Apartment Units |
|
|
Purchase Price |
|
|
Acquisition Cap Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2019 |
|
|
309 |
|
|
|
79,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Properties |
|
|
|
|
4 |
|
|
|
1,084 |
|
|
$ |
489,930 |
|
|
|
4.4 |
% |
|
Land Parcels |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
3,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition Yield |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Rental Properties |
|
|
|
|
(7 |
) |
|
|
(641 |
) |
|
$ |
(303,925 |
) |
|
|
(4.7 |
%) |
|
Land Parcels |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
(1,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed Developments – Consolidated |
|
|
|
|
2 |
|
|
|
221 |
|
|
|
|
|
|
|
|
|
|
Configuration Changes |
|
|
|
|
— |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2019 |
|
|
308 |
|
|
|
80,299 |
|
|
|
|
|
|
|
|
|
|
Portfolio Rollforward 2019 ($ in thousands) |
||||||||||||||||||
|
|
|
|
|
Properties |
|
|
Apartment Units |
|
|
Purchase Price |
|
|
Acquisition Cap Rate |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2018 |
|
|
307 |
|
|
|
79,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Properties |
|
|
|
|
8 |
|
|
|
2,142 |
|
|
$ |
922,080 |
|
|
|
4.6 |
% |
|
Rental Properties – Not Stabilized (A) |
|
|
|
|
2 |
|
|
|
586 |
|
|
$ |
202,500 |
|
|
|
4.8 |
% |
|
Land Parcels |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
19,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Price |
|
|
Disposition Yield |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions: |
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Consolidated: |
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Rental Properties |
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|
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|
(9 |
) |
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|
(1,202 |
) |
|
$ |
(706,675 |
) |
|
|
(4.5 |
%) |
|
Land Parcels |
|
|
|
|
— |
|
|
|
— |
|
|
$ |
(1,900 |
) |
|
|
|
|
|
Unconsolidated: |
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Rental Properties (B) |
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|
(2 |
) |
|
|
(945 |
) |
|
$ |
(394,500 |
) |
|
|
(4.7 |
%) |
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Completed Developments – Consolidated |
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2 |
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|
|
221 |
|
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Configuration Changes |
|
|
|
|
— |
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|
15 |
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9/30/2019 |
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|
308 |
|
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|
80,299 |
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|
(A) |
The Company acquired two properties in the Denver market in the nine months ended September 30, 2019 that are in the final stages of completing lease-up and are expected to stabilize in the second year of ownership at the Acquisition Cap Rate listed above. |
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||
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(B) |
The Company owned a 20% interest in unconsolidated rental properties located in San Jose, CA and South Florida. Sales price listed is the gross sales price. The Company received net sales proceeds of approximately $78.3 million and recognized a GAAP gain on sale of approximately $69.5 million. |
Contacts
Equity Residential
Marty McKenna, (312) 928-1901
